India refuses to pay $1 m guarantee to Iran to free tanker

By Vessels

India has refused to pay $1 m to Iran in order the detained tanker to be freed. Iran stopped MT Desh Shanti, a 2004-built double-hull tanker on 13 August sailing from Basra in Iraq to Visakhapatnam on India’s eastern coast transporting crude for state-run oil refiner Hindustan Petroleum Corp. Ltd.
The tanker has been detained allegedly for polluting Iranian waters.

Government officials in India explained:
"We are not going to give them any guarantee that is meaningful, but we will give Iran something so that they can exit from this."

The problem with the tanker provoked discussions in the the ministries of shipping, petroleum and natural gas, directorate general of shipping and Shipping Corp. of India Ltd. The solution that is needed must not violate Western sanctions on Iran and has to be in the same time convenient.

The problem in the situation is that the Ports and Maritime Organization of Iran has requested a $1 million guarantee from the ship’s insurer, The Steamship Mutual Underwriting Association (Bermuda) Ltd in order to free the vessel MT Desh Shanti.
But giving the guarantee to Iran will be impossible because of the sanctions over Iran. Western countries suspect that the country is developing nuclear weapons. Iran in other hand informs that nuclear technology is used only for peaceful purposes. The UN, US and European Union (EU) imposed sanctions on one of the biggest producers of oil in the planet.

European Union have decided to ban the purchase, transport, finance and insurance of Iranian oil from 1 July 2012 in reaction against Iran's nuclear technology.

The case of this detained tanker is a test for the future. What if Iran continues to make problems to passing ships with false claims?