BLBG:India to Pay for Part of Iranian Oil Imports in Rupee, Fars Says
India will pay for as much as 45 percent of its crude imports from Iran in rupees, the state-run Fars news agency reported, citing Mehdi Nabizadeh, the Gulf nation’s ambassador to India.
“Indian oil importers are keen to use this method for paying Iran as they believe the channel of payment through a Turkish bank may be blocked due to sanctions” against the Islamic Republic over its nuclear program, Nabizadeh said, according to Fars.
The proposal, made by India, was accepted by Iran, he said. The two countries are seeking a solution for payment to be made for the remaining 55 percent, Nabizadeh said.
Iran’s central bank has opened an account with India’s government-run UCO Bank to receive payment for its crude exports to the South Asian nation in rupees, the Financial Chronicle newspaper said earlier this week, citing unidentified officials.
India and Iran have struggled to protect $9.5 billion in annual crude trade amid escalating economic and financial sanctions against Iran. The Reserve Bank of India dismantled a mechanism in December 2010 used to settle payments in euros and dollars. Transactions are now routed through Turkiye Halk Bankasi AS, based in Ankara, which has told Indian refiners it may no longer be able to act as an intermediary, four people with knowledge of the matter said Jan. 10.
To contact the reporter on this story: Ladane Nasseri in Dubai at lnasseri@bloomberg.net
To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net
