Baku, Azerbaijan, Jan.3
By Fatih Karimov - Trend:
India extended its insurance cover for Iranian ships to enter Indian waters for a further six months on December 27, the Tasnim News Agency quoted Mina Sediq Nouhi, an official at Iran's Central Insurance Company as saying on January 3.
India had asked Iran to provide $370 million as a guarantee for insuring its tankers, but Iran did not accept, she added.
India's Deputy Nautical Adviser, Deepak Kapoor, sent the letter to Iran's Economic Affairs and Finance Ministry on Dec. 10 ahead of a renewal of approval to the Iranian underwriters on Dec. 27, according to Reuters.
In September, India granted a three-month extension to Iranian underwriters Kish P&I and the Moallem Insurance Co. for insuring oil tankers and ships calling at Indian ports after Tehran provided a sovereign backing of $1 billion.
Iran and the world powers reached a breakthrough agreement last month over Tehran's disputed nuclear programme that allowed the Middle Eastern nation to continue oil shipments at current levels of about one million barrels per day.
International sanctions on Iran have made it difficult to insure refineries and ships involved in trade with Iran and forced India to settle 45 percent of oil payments in rupees through the state-owned UCO Bank while refiners are withholding the remainder.
India is the second-biggest market for Iranian oil after China and India and Iran and last week held discussions on ways to settle oil trade in hard currencies like dollars and euros. However no mechanism has been finalised yet.
Edited by S.M.