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Iran Press TV

Indian refiners stop buying crude oil from Chinese companies

Iran Press TV

Friday, 28 August 2020 9:12 AM

India has stopped purchasing crude oil from China-linked companies, as part of New Delhi's recent move to restrict imports from neighboring countries in the wake of an escalating border dispute.

New Delhi has passed a new law that restricts state refiners from dealings with companies from countries sharing a border with India, Reuters reported citing unnamed sources.

Last week, Indian state refiners decided to stop sending crude import tenders to Chinese trading firms like CNOOC, Unipec and PetroChina among others, the report sad.

To participate in Indian tenders, the order makes registration with a department in the federal commerce ministry 'mandatory' for any bidders from nations sharing a border with India.

The country shares borders with Pakistan, China, Bangladesh, Myanmar, Nepal and Bhutan.

The new order, however, did not name any specific country.

India is the world's third biggest oil consumer which imports nearly 84% of its oil needs.

China does not export crude to India but Chinese firms are among major oil traders globally.

Indian state refiners, which control 60% of the country's 5 million barrel-per-day refining capacity, regularly tap spot markets for crude.

New Delhi put the new restriction in place in July, after border tensions erupted between India and China in the wake of clashes that led to the deaths of 20 Indian soldiers in the Galwan Valley, a precipitous and rocky border area that lies between China's Tibet and India's Ladakh regions.

That was the first such deadly clash at the disputed border in the western Himalayas since 1967.

India accused Beijing of having "pre-meditated and planned" the fighting, but China said Indian troops had violated a military agreement, and attacked its troops.

The governments of the two nuclear armed powers are now seeking to reach an agreement on ways to pull back troops from across the disputed border.

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