Reports regarding India allegedly banning U.S.-sanctioned Iranian ships from entering Indian waters

Government has seen media reports regarding India allegedly banning U.S.-sanctioned Iranian ships from entering Indian waters. These reports are incorrect. With the EU sanctions, which came into effect on July 1, 2012, some complications arose due to the non-availability of P&I club insurance to ships carrying Iranian crude oil. Consequently, a general exemption was granted by Government to foreign ships carrying Iranian crude oil on CIF basis to dock at Indian ports under certain conditions. Subsequently, the national insurance companies have agreed to extend insurance cover to Indian ships for transportation of Iranian crude to India. In view of this, the general exemption granted earlier to oil PSUs for carrying Iranian crude on CIF basis has been withdrawn. We understand that there are some issues yet to be resolved between the national insurance companies and the ship owners regarding the terms of the insurance cover to be provided to Indian ships for carrying Iranian crude oil to India. While the matter is being resolved, permission for ships carrying Iranian crude oil to India on CIF basis is being granted on a case by case basis on the request of oil PSUs.