India, the world’s fourth largest consumer of oil, has announced that it will not impose sanctions on Iranian oil.

Reuters reports that Indian Finance Minister Pranab Mukherjee told reporters in Chicago, at the end of a two-day visit to the U.S.: “It is not possible for India to take any decision to reduce the imports from Iran drastically, because among the countries which can provide the requirement of the emerging economies, Iran is an important country amongst them.”

India relies on the Iranian crude market for 12 percent of its petroleum demand.

The U.S. has imposed sanctions on all companies and institutions that have dealings with Iran’s Central Bank, forbidding them from doing business in the United States.

The European Union has imposed sanctions on Iranian oil, which state that none of the EU state members will buy Iranian crude past a July 1 deadline.

The U.S. has been unsuccessful in its efforts to convince India and China to reduce their use of Iranian petroleum products.

Source : Reuters