India has joined Japan in offering government-backed insurance for ships carrying Iranian crude in order to bypass European sanctions that have nearly halved Iranian oil exports to key markets.

The first Indian ship to carry oil from Iran with Indian insurance is scheduled to load up in Iran on Wednesday, a shipping company executive said. This is a breakthrough for the Indian government, which has scrambled to maintain vital Iranian oil imports after European sanctions blocked third-party insurance in July.

South Korea stopped importing Iranian crude in July, when the insurance sanctions hit. Two refiners told The Associated Press on Monday that they were in talks with the South Korean and Iranian governments about using Iranian tankers under Iranian insurance cover to import oil.

“Iran first made the offer,” said Eom Ik-hoon, spokesman for South Korea’s largest refiner, SK Energy, which imported 10 percent of its crude from Iran before the sanctions hit. “We are discussing details with the South Korean government, but we do not know when imports will be resumed.”

Hyundai Oil Bank Co.’s spokesman Koh In-soo said the company was also reviewing using Iranian ships and insurance, but denied earlier news reports that the crude imports may be resumed as early as September.

Via: http://www.insurancejournal.com/news/international/2012/08/15/259365.htm

So, main consequence - damage of Europe economics :-)