India to end Iran euro payments

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Image for illustrative purposes).

(Image for illustrative purposes).

India will stop this week an 18-month old payment process for Iranian crude oil imports facilitated through a Turkish bank, in the wake of tighter sanctions on the country, the Economic Times of India reported. 

The government will end payments for Iranian imports on February 6, when new US Treasury sanctions, go into effect, the newspaper reported, citing an Indian Oil Ministry official.

India has been paying in euros for about 55 percent of its purchases of Iranian oil through Ankara-based Turkiye Halk Bankasi since July 2011 with the remainder of the payments made in rupees.

India will continue to pay for Iranian imports in rupees, the newspaper reported, citing the unidentified official.

Iran will now have to keep its oil revenues in local bank accounts in countries purchasing its oil and can only use oil earnings to purchase "permissible'' services and goods, such as food, medicine and basic medical equipment, from those oil customers as imports back into the Islamic Republic.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Mulango

PUPPETS

Posted by: Ponder

Puppets? How? India gets to pay in their own currency & money stays within their own banking system to be used for purchases from their own local companies thus boosting the economy as a whole.

They get the oil they want, & get the Iranians to spend/pump the money back into the Indian economy only.

Sounds like a great deal to me!

Should be good for Indian pharma companies etc.

Posted by: procan

Sanctions are better than bombs.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia, Kuwait shared zone tensions underlie oilfield closure

Saudi Arabia, Kuwait shared zone tensions underlie oilfield closure

Crude output from jointly-run offshore Khafji oilfield has been...

The billion dollar war

The billion dollar war

As US president Barack Obama seeks to slash the Pentagon’s budget...

End of Gaza war doesn't translate into peace

End of Gaza war doesn't translate into peace

A week after the guns fell silent in the Gaza war, Israel and...

Most Popular
Most Discussed