India will create an Energy Insurance Pool
(EIP) fund to support local insurers giving coverage to refiners processing
Iranian crude oil. The Indian government will reportedly contribute 20-billion-rupee (about
USD 400 million) to the fund. (Press TV, 31 March)
The Indian refiners using Iran Heavy crude, state-run Mangalore Refinery & Petrochemicals Limited (MRPL) and Essar Oil Ltd, cannot obtain insurance coverage from local companies to purchase 100,000 barrels of Iranian oil they need on daily basis. Without the ability to obtain coverage due to Western sanctions, the refiners will have to switch to different types of crude from other OPEC suppliers, a costly process. However, a $400 million fund might not be large enough to provide local coverage to the refineries.
File photo: Iran Najm oil tanker (IRNA)
The Indian refiners using Iran Heavy crude, state-run Mangalore Refinery & Petrochemicals Limited (MRPL) and Essar Oil Ltd, cannot obtain insurance coverage from local companies to purchase 100,000 barrels of Iranian oil they need on daily basis. Without the ability to obtain coverage due to Western sanctions, the refiners will have to switch to different types of crude from other OPEC suppliers, a costly process. However, a $400 million fund might not be large enough to provide local coverage to the refineries.
File photo: Iran Najm oil tanker (IRNA)
As the grown-ups have been posting here and elsewhere, this is a logical move as India and Iran are key regional players and trade partners. China has done the same with Iran and most Asian now by-pass worthless Zionist owned "western" insurance scammers. Indo-Iran trade is growing at about 40% per annum and there are plans for joint banks and various industrial and trade ventures. Interestingly, even usual puppet nations like Australia have seen the handwriting on the wall and dumping the toilet paper US dollar and doing currency swaps with China and India.
ReplyDeleteThanks, Asian World Reserve Currency, But No Thanks to a deadbeat US: Australia And China To Enable Direct Currency Convertibility
A month ago we pointed out that as a result of Australia's unprecedented reliance on China as a target export market, accounting for nearly 30% of all Australian exports (with the flipside being just as true, as Australia now is the fifth-biggest source of Chinese imports), the two countries may as well be joined at the hip.
ver the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world's "reserve currency" in its trade dealings with the world's biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process "slashing costs for thousands of business" and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar's reserve currency status until one day the beleaguered US dollar is as worthless as its debt bound and declining economy ruined by wars and corruption.
That said, this latest development in global currency relations should come as no surprise to those who have followed our series on China's slow but certain internationalization of its currency over the past two years. To wit: "World's Second and poised for number one (China, And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees", and "The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap."
Iran was the pioneer in dumping the marginalized dollar and paying the way for Asian bi-lateral swaps as Asian economies grow more dependent on Iranian energy reserves and strategic location. India is signing a major transit agreement for the use of Iran's strategic deep-water port of Chah-Bahar to access the rich central Asian economies. The sun has indeed set of the US moth ridden short-lived empire of hubris.
Very true,little by little we are seeing the creation of alternate trade mechanisms that bypass their western equivalents
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