Increasingly stringent sanctions on Iran are pinching far more than just the Iranian economy, as Indian oil refineries begin looking to replace production from this increasingly difficult supplier, according to The Times of India.
Pressure continues to increase on the Middle Eastern nation as Western nations attempt to force the country to curb its efforts to develop nuclear weapons. The increasing sanctions have turned many financial institutions away from dealing with the nation, even in the region, as countries nearby begin to support these efforts.
Indian refineries have already felt the sting from this policy as Halkbank in Turkey refused to set up an account to help purchase crude oil from Bharat Petroleum in Iran last year. With sanctions increasing, Indian oil refinery operators like Indian Oil corp and Mangalore Refinery and Petrochemicals Ltd have turned to Saudi Arabia for greater imports.
Others, such as Hindustan Petroleum, have turned to the spot market, which could prove substantially more expensive.
Reuters reports that China looks to be the main benefactor of this policy, still buying Iranian oil now at a discounted price, but refinery operators in other major Asian economies face great difficulty replacing the supply from the country.