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India pays Iran EUR 2 billion in oil dues
Indian refiners have made payment of EUR 1.5 billion for crude bought from the National Iranian Oil Company, ending over 2 months of supply concerns after the RBI scrapped a regional money transfer mechanism.
Mr S Jaipal Reddy oil minister of India said that Pending dues are now being cleared and as of March 1st 2011 payment of EUR 1.5 billion has been made to the Central Bank of Iran.
Indian refiners buy 12 million barrels of crude every month form Iran which makes up about 12% of oil imports. Uncertainty over these supplies arose after the RBI scrapped the Asian Clearing Mechanism, an arrangement that allowed SAARC nations to do business with Iran that faces UN and U.S. sanctions.
Though Indian refiners could not pay for crude, Iran continued to supply crude in view of the long relationship with India. As a result, the outstanding had gone up to USD 4 billion.
The payments are being routed through the German central bank, Deutsche Bundesbank which has allowed payment in euro through EIH Bank. Refiners are certifying the oil they bought, which is then being vetted by the oil ministry. SBI is routing the payments from India and certifying the transactions.
Steel Guru : India pays Iran EUR 2 billion in oil dues - 194585 - 2011-03-07
Indian refiners have made payment of EUR 1.5 billion for crude bought from the National Iranian Oil Company, ending over 2 months of supply concerns after the RBI scrapped a regional money transfer mechanism.
Mr S Jaipal Reddy oil minister of India said that Pending dues are now being cleared and as of March 1st 2011 payment of EUR 1.5 billion has been made to the Central Bank of Iran.
Indian refiners buy 12 million barrels of crude every month form Iran which makes up about 12% of oil imports. Uncertainty over these supplies arose after the RBI scrapped the Asian Clearing Mechanism, an arrangement that allowed SAARC nations to do business with Iran that faces UN and U.S. sanctions.
Though Indian refiners could not pay for crude, Iran continued to supply crude in view of the long relationship with India. As a result, the outstanding had gone up to USD 4 billion.
The payments are being routed through the German central bank, Deutsche Bundesbank which has allowed payment in euro through EIH Bank. Refiners are certifying the oil they bought, which is then being vetted by the oil ministry. SBI is routing the payments from India and certifying the transactions.
Steel Guru : India pays Iran EUR 2 billion in oil dues - 194585 - 2011-03-07