India, Iran Discuss Banking Process, Rupee-Rial Trade to Withstand US Sanctions

India, Iran Discuss Banking Process, Rupee-Rial Trade to Withstand US Sanctions

India, Iran Discuss Banking Process, Rupee-Rial Trade to Withstand US Sanctions

But India's post-independence history as a leader of the "non-aligned" movement - developing nations not allied with the USA or the then-Soviet Union - means New Delhi maintains economic relationships that raise eyebrows in western capitals, including with Iran, Venezuela and North Korea.

US President Donald Trump this month withdrew the US from the Iran nuclear deal and ordered the reimposition of sanctions suspended under the 2015 accord. While US defence secretary Jim Mattis has already argued for "national security waivers and relief" from CAATSA for countries like India, Thornberry said the Congress and Senate were also working on measures and language to ease Indian concerns. "India will comply with United Nations sanctions and not any country-specific sanctions", Swaraj said.

Iran, being one of India's top oil suppliers, boasts a long-standing political and economical relationship with New Delhi.

Swaraj is scheduled to hold talks with Iranian Foreign Minister Mohammad Javad Zarif later on Monday.

India continued to trade with Iran throughout previous sanction periods, but was forced to cut oil imports as sanctions choked off banking channels and insurance cover for tankers.

"We will be sending out teams of diplomats and specialists to talk about specific concerns with the plan for re-imposition of USA nuclear-related sanctions and next steps with Iran", the official said. "There is concern that any country and not just India that acquires that system will complicate our ability to work towards interoperability together", Chairman of the US Arms Service Committee Mac Thornberry said on Monday.

Beijing, which is Iran's top trade partner and one of the biggest buyers of its oil, has signalled that it intends to keep working with the Islamic regime despite the U.S. move. This plan allows India to compete with the joint China-Pakistan port of Gwadar in Pakistani Baluchistan, giving it a geo-strategic reach-around Islamabad and Beijing.

India is the world's third-biggest oil consumer. To continue with this quest, he has backed an "all of the above" energy strategy much like that of former United States president Barack Obama. And, India wants a good relationship with Iran as a way of offsetting its hard relationship with Pakistan. Yes, they buy oil from them also, but the Venezuelan oil supply has become sketchy at best under Maduro.

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