India risks INFURIATING Trump by DEFYING Iran sanctions just days after Russia arms deal

The likely arms deal with Russia would see India purchasing a S-400 missile defence system for nearly £4billion.

The US responded by threatening to impose sanctions on India if the deal goes ahead.

Just days later, it looks like India will join the ranks of the UK, the EU, Russia, China, France and Germany — the countries in the Iran nuclear deal — by ignoring Trump’s threats to stop trading with Iran.

One source, who wished to remain anonymous, said: “Refiners have placed November nominations to lift 1.25million tones (about 9million barrels) of oil from Iran.” They told Reuters Indian Oil Corps will lift 6millionn barrels of Iranian oil and Magalore Refinery and Petrochemicals Ltd will take 3million barrels.

The US sanctions, which were introduced after withdrawing from the Iran nuclear deal, should extend to countries that continue making “significant transactions” with Iran, but those remaining in the deal have refused to comply.

As the third-biggest oil importer in the world, India also not taking notice of these sanctions will come as a huge blow to the Trump administration.

A second source said: “India is continuing with its relationship with both its key energy partners Iran and the US.” A US government official said the Trump administration is “in the midst of an internal process” of considering waivers for countries that are reducing imports of Iranian crude oil.

US Secretary of State Mike Pompeo said in India last month that they may consider waivers for Iranian oil buyers like India, but they must reduce their imports.

India imported around 10million barrels of Iranian oil in October and the November shipment is expected to be around 1million barrels fewer.

The Joint Comprehensive Plan of Action, a deal reached in 2015 by the Obama administration, meant the sanctions on Iran were dropped in exchange for Iran limiting its nuclear activities. President Trump decided to leave the deal and reimpose sanctions, which come into force on November 4.

During the previous round of sanctions, from 2012 to 2015, India continued buying Iranian oil although it cut its purchases significantly to protect its access to the US market.

India’s foreign minister said in May that India only abides by sanctions imposed by the United Nations and not any one country.

The European Union has said they are working towards a “special purpose vehicle” before November to circumvent US sanctions and facilitate trade with Iran. The second source said: “Previously there was no European channel. This time Europe is not working with the US, so we intend to evolve a mechanism.”

India has a strong trade and diplomatic relationship with both Iran and the US.

The first source added: “It is still early to say how India will settle its trade with Iran”, and said it may consider paying for the oil with the rupee currency.