India will not guarantee Syrian oil imports because of turmoil

India will not guarantee Syrian oil imports because of turmoil


The conflict in the middle-east is affecting the India’s oil security. Not only is the oil deliveries from sanctions hit Iran under pressure, apparently it will not be able to import oil from Syria either, which has come under sanctions too. India has recently voted against Syria in the UN, supporting a resolution for the Syrian president Bashar al Assad to step down. Apparently as a follow up it is refusing to insure oil shipments from the country.

It has been revealed from two government sources who refuse to be named that India has refused to provide its sovereign guarantee for oil imports from Syria. The sensitivity of the matter forces the sources to reveal the information anonymously.

The decision is harsh for refiners who had been hoping for an alternative as supply from Iran seem to be in jeopardy. The oil ministry had also been hoping the government could back cargoes from Syria by underwriting them. So far Indian insurance firms could not find re-insurers for shipments from the Middle East country and India has not been buying any oil from it.

The sanctions has also made it tougher for its Asian customers to pay for oil imports. India recently approved a barter system to pay for Iranian oil. Indian companies Hindustan Petroleum Corp and explorer Oil and Natural Gas Corp, have stakes in Syrian oil fields. The companies have been trying to import oil from Syria but they has been unable to find insurers. India will have to find alternative ways to both get the oil from its middle-east suppliers and pay for them. Iran is one of its largest suppliers which accounts for 11% of its oil imports.

A brutal civil war in going on in Syria which has already resulted over 6000 deaths according to the UN. Syrian army has been bombarding Homs, one of its largest cities and a hotbed of opposition.

It today refused access to Red Cross to the city even though the residents there are facing a humanitarian crisis.

More in Latest