Iran’s Oil to India

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Iran warns India on halting oil supplies to India over delayed payments. National Iranian Oil Co. (NIOC) made the warning in a letter requesting the Indian refineries to make a sustainable payment mechanism. However, Mohsen Qamsari, head of NIOCs international affairs, clarified that they have no intention of halting the supplies to India.

Iran exports $12 billion worth of crude oil to India, while the Indian refiners owe Iran about $2 billion for the imports. Due to complications on making payments, the refineries are figuring out a permanent solution to make timely payments.

Iran is also under international sanctions over its nuclear program, and punitive measures include restrictions on financial transactions with the country.

India’s Petroleum and Natural Gas Ministry says Iran’s oil exports to the country will not be affected as alternative payment routes have been put in place.

“There has been no disruption in supply since [Reserve Bank of India] RBI issued new payment guidelines. A cargo for delivery on January 8 and 9 is currently being loaded in Iran and we have no problems sourcing crude from Iran,” India Today quoted India’s Petroleum Secretary S. Sundareshan as saying on Tuesday.

The minister also said that the two central banks would meet in Tehran to find a permanent solution to the matter. The focus of the meeting would be to choose a payment currency, such as the Iranian Rial, Dirham and Yen, which are not susceptible to US pressure.

Source: Bloomberg, Press TV, Energy and Capital

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