Pragati: When Iran Sanctions Bite

The article published in Pragati (September 29, 2014) breaks down the sanctions on Iran and traces their effects on India.

Image courtesy: Pragati

“The first problem was with respect to reducing imports and reconfiguring refineries…

The second concern was the often raised payment issue. Observing the increasing pressure on Iran, India had by mid-2011 stopped paying for oil imports through Iran’s central banks…

The third problem was regarding maritime (re)insurance. The EU embargo on Iranian oil in 2012 prohibited EU insurers and reinsurers from covering Iranian oil shipments. European insurance clubs handle a majority of the world’s tanker insurance (95 percent of the world’s tanker fleet).”

Sumitha Kutty

Associate Research Fellow tracking Iran and South Asia at S. Rajaratnam School of International Studies, Singapore.