US tries to steer oil-thirsty India away from Iran

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US tries to steer oil-thirsty India away from Iran

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Clinton lands in Kolkata with an agenda to press India to reduce oil imports from Iran.

06 May,2012 02:16 pm

India has huge energy needs to fuel its rapid growth but has made some progress in easing its dependence on Iranian oil. A senior official traveling with Clinton in Asia said the United States wants to see more.The official, who spoke on condition of anonymity to preview Clintons private discussions in Kolkata and New Delhi, said the trend lines are good but we really need to receive assurances that they are going to continue to make good progress.Clinton arrived in Kolkata on Sunday after visits to China and Bangladesh.The official said India had recently stepped up imports of oil from Saudi Arabia to make up for the reduction in Iranian oil and that the U.S. was eager to see the Indians explore other alternatives.India and Iran reached a deal earlier this year that would allow India to pay for about 45 percent its Iranian oil purchases in rupees. Iran would then use the Indian currency to buy goods from India.International economic sanctions on Iran had made oil trade difficult, because Indian oil importers had to scramble to find banks willing to handle transactions with Tehran.