India to end Iran euro payments

India will cease 18-month old payment process for crude imports through Turkish bank

(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.

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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.

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