India has done well to put in place the nuts and bolts of a payment mechanism for its trade and investment transactions with Iran against the backdrop of the US withdrawal from the Iran nuclear deal (known as the Joint Comprehensive Plan of Action) in May last year followed by the imposition of sanctions against Iran....India Punchline
India sequesters Iran ties from US predatory strike
M. K. Bhadrakumar | retired diplomat with the Indian Foreign Service
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The Indian Oil Corporation Ltd (IOCL) is 57% state-owned, and controls half of India’s petroleum industry. Another 30% of the industry is controlled by competitors Bharat Petroleum and Hindustan Petroleum, which are also state-owned.
All of these need Iranian oil, and they have spent years having to cope with Western sanctions against Iran.
By “sequestering Iran ties from US predatory strike,” Indian companies developed alternate means of trading with Iran and settling financial accounts with Iran (probably with the intermediary help of Russia and China). Iran is accepting India rupees for Iranian oil. This is part of the global movement away from U.S. dollars. The stronger de-dollarization becomes, the weaker the USA will become.
The “sequestering” was necessary because the Indian economy is vulnerable to Western hostility toward Iran.
In addition, India is creating a strategic crude oil reserve that will contain enough oil for two weeks of national consumption.
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