The Communist Party of India-Marxist (CPI-M) lambasted the United Progressive Alliance (UPA) government on Thursday for its prohibitive new rules on oil payments to Iran, a move being seen by the left as dictated by America.
According to reports, Tehran has refused to sell oil to New Delhi under the new conditions, after the Reserve bank of India (RBI) barred companies from using the Asian Clearing Union (ACU) system, to process payments.
The system — used by central banks of member nations to settle bilateral trades — was stifled by India’s federal bank last Friday, sending companies scurrying in search of alternative options to process payment to Iran for long-term basis.
Experts say while the move endangers the USD 12 billion trade for Iran, for India the situation does not seem rosy either as it imports 16 to 17 percent of its gas and crude oil requirements from the Islamic republic.
The CPI-M has said the decision, taken under American pressure to enforce its sanctions imposed on Iran, will directly affect India?s trade with the country and hit hard the oil and gas imports.
India is the largest importer of Iranian crude among ACU members which includes Pakistan, Bangladesh, Bhutan, Maldives, Nepal, Sri Lanka, Myanmar and Iran.
“This decision of the Government of India is a shameful surrender to US foreign policy agendas and is against the national interest,” it said.
In the statement, the party also pointed out that that the sanctions imposed by the United Nations on Iran exclude imports in the energy sector.
“The Polit Bureau of the CPI-M condemns this decision of the government as being against the national interests. It demands rescinding of the step. It calls on other political parties to also put pressure on the government,” the statement read.