US exempts India, 6 other nations from Iran oil import sanctions

The US' list of nations qualifying for exemption from financial sanctions on Iranian oil imports has grown to include seven economies, including India.

India, South Korea, Turkey, South Africa, Malaysia, Sri Lanka and Taiwan would not face penal action by the US for continued oil imports from Iran over the next six months as they had proven they ''have all significantly reduced'' the volume of the oil they bought from Iran, secretary of state Hillary Clinton said in a statement yesterday.

Meanwhile, oil prices were down for the fourth day in New York on speculation that the US exemptions would limit the risk of global supply disruptions. Crude for July delivery fell as much as 2 per cent to $81.07 a barrel in electronic trading on the New York Mercantile Exchange, extending it loss this year to 17 per cent.

China, the leading importer of Iranian crude in the first half of last year, and Singapore have not been granted exemptions and US officials familiar with the decision said talks were continuing, and exemptions may be granted before the 28 June deadline for the sanctions to take effect. China, which imports crude from Iran based on its economic needs and has told the US that its actions were ''completely fair and transparent,'' according to foreign ministry spokesman Liu Weimin who spoke at a briefing today.

"We have seen the US notification exempting Indian financial institutions from the application of the provisions of US domestic law for energy-related transactions with Iranian Central Bank and other financial institutions designated by the US government,'' external affairs ministry spokesperson Syed Akbaruddin, said.

"This is a decision taken by the US government under its domestic law," he added.