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.