Iraq stops deliveries of crude to India

Iraq has stopped oil deliveries under the term contract to India even as New Delhi is awaiting UN clearance for a fresh deal to buy crude from Baghdad in exchange for wheat, the Press Trust of India PTI reported.

Official sources said that Iraq has stopped deliveries of last two consignments of 1.5 million tonnes term deal for which two vessels hired by state-owned Indian Oil Corporation (IOC) are anchoring at Iraqi ports.

Indian Petroleum Minister Ram Naik said that he was not aware of the development. Iraq is reported to have stopped crude deliveries to various countries to demand a 40 per cent per barrel surcharge.

He, however, told reporters on the sidelines of a seminar on Petroleum Prices and its impact, organised by ASSOCHAM, that government was yet to get a communication from the UN's sanctions committee about India's oil-for-food proposal.

"We are yet to receive a formal communication from the United Nations Sanctions Committee. We can proceed on the subject only after this," he said when asked about the reports that UN Committee had already approved the proposal.

Asked about Iraq's demand for a surcharge over the UN decided prices, Naik said he had discussed various aspects of the deal including pricing with the visiting Iraqi Vice President Yassin Ramadhan last month.