By Lalit K Jha Washington, Jan 24 (PTI) India's purchase of oil from Iran has declined slightly over the last two years and is expected to decline further due to the problems that New Delhi would have to make payments through banks due to the severe penalties imposed by the U.S. led international community against top Iranian banks. "Iran is an important source for our crude oil imports. These imports have declined little, not much, but just over the last two years, the last two years or so, "Indian Ambassador Nirupama Rao in the U.S. said. "And ... given the sanctions and because of difficulties in the operation, banking on Iran, it is evident that the tumor can not be expected to rise to such a situation. There may be a further reduction. It may well be so, "he said. Rao, said India was in touch with the U.S. and closely monitoring the situation in Iran, when asked about the pressure from the U.S. that India should reduce its dependence on Iranian oil. India, he argued, was a responsible country and cooperate with the international community on this issue. "We abide by the rules. We do not play out of the system to them. But we must not forget that the Gulf region is extremely important for India," he said, referring to the six million Indians working there. It is a source of our energy imports he added. Noting that India was basically an energy importing country, Rao referred to Mangalore refinery that imports of Iranian oil. "So it's going to take time to readjust and too see how we can escape from the old standards how they work on these issues, "said Rao. India is the second largest importer of Iranian crude oil to China.
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