Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

SCI denies pollution, rejects $1m Iranian guarantee

SCI denies pollution, rejects $1m Iranian guarantee
India is to reject Iran’s demand for a $1m guarantee for the release of detained tanker Desh Shanti, an unnamed “top bureaucrat” has said.

“We are looking at some strategy to come out of this. But, we will have to do this very quietly,” said the source, speaking to India’s Livemint having attended a meeting between Indian shipping officials and Shipping Corporation of India. “What Iran has done is not legal.”

“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 Lloyd’s Register classed Desh Shanti was seized by the Iranian Navy on 13 August and since detained at Bandar Abbas port, charged with polluting Iranian waters with discharge of oily ballast water. The vessel has been subject to repeat inspections by Iranian officials, but so far only a minor fault in the vessel’s oil-leak control alarm system has been found. The vessel’s double hull is in good condition. An investigation by inspectors from the India Register of Shipping is expected to be joined by those of Lloyd’s Register.

Meanwhile, SCI has denied Iranian allegations of pollution. “Our ship has not caused any pollution, but Iran is insisting on a letter of undertaking for $1 million to release the ship,” B.K. Mandal, Shipping Corporation’s finance director, said. “Why should we give the letter of undertaking? We are not responsible for the pollution.”

Although India has massively reduced its imports of crude oil from Iran due to economic sanctions from the United Nations, the US, and the European Union, it is unclear whether payment of the $1m guarantee would constitute a breach of the sanctions. An Iranian vessel is also said to be under detention at Kandla port in Gujarat, according to a report by The Hindu.