By Ronak D. Desai
Less than a month before the latest round of U.S. sanctions were set to take effect against Iran’s oil industry, the Obama Administration announced that it had exempted India from the tough new measures. Under the law that was enacted late last year, countries importing oil from Iran were given until the end of June 2012 to “significantly reduce” the volume of their oil purchases or face U.S. sanctions. The exemption, also given to six other nations, protects India’s financial institutions from facing the severe penalties for doing business with Iran, allowing them to continue to enjoy crucial access to the U.S. financial system.
Although somewhat predictable, Washington’s decision to grant the sanctions waiver to India is significant. It not only recognizes New Delhi’s efforts to reduce its oil imports from Iran, but it also illustrates the extent to which the United States and India are committed to working through potential differences with one another and maintain a strong and robust partnership.
Read the full story at The Diplomat