BRICS won’t snap ties with Iran despite US sanctions

Iran is world’s third largest oil exporter,and a decrease in oil exports has made oil expensive.

Written by ENS Economic Bureau | New Delhi | Published: March 28, 2012 12:01:26 am

India and China today asserted that they would pursue normal trade relations with Iran despite US sanctions over Tehran’s nuclear programme. The strong response comes in the wake of exemption given by the US last week to Japan and 10 European nations from financial sanctions for significantly reducing their purchase of oil from Iran.

In fact,given the energy security requirements and rising crude prices,BRICS nations — Brazil,Russia,India,China,and South Africa — decided not to snap ties with Iran despite the US sanctions,according to officials present at the trade ministers’ meeting ahead of the BRICS leaders’ summit in New Delhi tomorrow.

“Yes,this was discussed. All BRICS members are members of the UN Security Council. We respect UN resolutions… at the same time,the resolution does not forbid countries to engage in trade in essential commodities and what is required for human good,” Commerce and Industry Minister Anand Sharma said.

Sharma’s Chinese counterpart Chen Deming repeated the same,adding that Beijing was not bound by “domestic laws of any particular country”.

Iran is the world’s third largest oil exporter,and a decrease in oil exports has made oil expensive. Deming pointed out that this would “negatively impact” BRICS as well as global economy.

While India imports 12 per cent of its oil from Iran,China meets 20 per cent of its requirement from Iran.

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