The US has said that it will exempt India and six other countries from financial sanctions because they have significantly cut purchases of Iranian oil. In a statement in Washington, Secretary of State Hillary Clinton said that exemptions will be granted to seven economies i.e.

India, Malaysia, South Korea, South Africa, Sri Lanka, Turkey and Taiwan. Japan and a number of European countries have already been exempted from Iran sanctions which will come into force later this month. Clinton issued the statement in this regard hours before External Affairs Minister SM Krishna was to arrive in Washington to co-chair the third India-US Strategic Dialogue along with his American counterpart.

In her statement, Clinton said as a result of her determination, she will report to the Congress that relevant sanctions will not apply to financial institutions of these countries.