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.

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.

All comments are subject to approval before appearing

Further reading

Features & Analysis
Power to the people in Saudi Arabia

Power to the people in Saudi Arabia

As Saudi Arabia fights to control surging electricity demand...

RAK to the future: Forging a reputation on the global business stage

RAK to the future: Forging a reputation on the global business stage

Ras Al Khaimah, the UAE’s second-smallest emirate, is quietly...

Anxious times as Middle East awaits clarity on Trump's policies

Anxious times as Middle East awaits clarity on Trump's policies

Donald Trump’s surprise presidential win is expected to rattle...

Most Discussed
sponsoredTracking