China and India plan to cut oil imports from Iran by 10 percent or more

China and India, the main buyers of Iranian oil plan to cut down oil imports from the Islamic Republic by 10 percent or more.

According to received information, the company Unipec, a subsidiary of China’s largest oil and gas corporation Sinopec Corp., Will reduce the import of Iranian oil by 10 – 20 percent of contracts for delivery in 2012. Quantities of energy coming from Iran to China in the first quarter has decreased sharply because of a price dispute between the parties on the annual supply contract. According to the experts, taking into account the constant level of supply for the corporation, Zhuhai Zhenrong Corp, and the company Chinaoil, China will reduce oil imports from Iran about 14 percent.

Meanwhile, Indian authorities are trying to reduce purchases of Iranian oil by 10 – 15 percent, according to sources in the industry.

January 23 this year, foreign ministers of EU countries have decided to completely stop importing Iranian oil. This solution leads to a ban on new contracts and renewals of existing agreements. However, previous transactions are still effective. A full embargo will be introduced by 1 July – by which time all existing contracts will be terminated.