India to accept Iranian crude
INDIA has allowed state-owned refiners to import Iranian crude from on CIF (cost, insurance, freight) basis instead of the traditional FOB (free on board) basis. Just a few days ago, leading Indian operators had said they would have to end imports from Iran (F24, 19 June).

Under CIF Iran will organise shipping and insurance cover and supply more than 200,000 barrels per day of crude to India without any hindrance after European sanctions hit insurance for the cargoes.

The shipping ministry has said it has "no objection" to refiners buying oil from Iran on a delivered basis for six months with effect from 1 July or until the state-owned General Insurance Corporation provides P&I or Hull and Machinery cover or US, EU sanctions are lifted; whichever occurs earlier.

With European sanctions coming into effect from that date, crude importers in Asia, Iran's biggest market, are struggling for insurance cover. The sanctions ban insurers and reinsurers from covering shipments of Iranian oil.

However, Indian shipping companies are not pleased with the development. "The Indian government should have provided sovereign cover for local shipping companies, as Japan and China did," a top official from a Mumbai-based shipping company told Fairplay.