"Sanctions that Benefit" - India’s HMEL bought 2 million barrels of Iranian oil.

"Sanctions that Benefit" - India’s HMEL bought 2 million barrels of Iranian oil.(AA).India’s HMEL, part-owned by steel tycoon Lakshmi Mittal, has emerged as a new oil client of sanctions-hit Iran, potentially complicating New Delhi’s bid for a renewal of its waiver from U.S. sanctions for buying crude from Tehran. HPCL-Mittal Energy Ltd (HMEL) has taken two shipments of Iranian oil since the start of September to maximize margins at its 180,000 barrels per day (bpd) Bathinda refinery in northern India, two sources with knowledge of the deals told Reuters.
The purchases came to a total 2 million barrels. In June Washington granted India a waiver on sanctions that would have cut it off from the U.S. financial system because it had reduced its purchases of the OPEC nation’s oil. India's waiver from the sanctions, which are designed to dissuade Tehran from pursuing its nuclear program, will only be renewed in December if imports have been cut further.
Mark Dubowitz, a U.S. lobbyist for tougher sanctions on Iran and head of the Foundation for Defence of Democracies, said HMEL was taking a significant risk in buying this oil. “The U.S. government in December will be looking to see whether India has indeed significantly reduced its purchases of Iranian oil and the addition of one more customer - especially with significant exposure to the U.S. and Europe - will raise eyebrows in Washington,” Dubowitz said.
In September HMEL bought a million barrels each of Arab Medium and Khafji, while for October it is scheduled to lift 2 million barrels of Arab Medium from the kingdom. “I am sure they can get good discounts (on Iranian oil). The problem is banking. If they can resolve it, they get cheap crude and not illegally,” said one Asian oil trader. None of the sources were aware of the payment mechanism that HMEL would use for oil imports from Iran. Indian refiner Bharat Petroleum Corp (BPCL) has not received Iranian oil since February as it could not open an account with Turkey’s Halkbank, which is used by other Indian refiners to pay for oil from Tehran in euros. “How HMEL will make its payment is yet to be seen,” said one of the sources. The rial has plunged in the open market against the U.S. dollar and has boosted inflation in Iran.Hmmmm....Mark Dubowitz, a U.S. lobbyist for tougher sanctions on Iran would better look at Turkey's total oil imports since Jan 2012 before 'judging' India.Read the full story here.