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| Iran agrees to receive all oil payments from India in rupees |
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 NEW DELHI (PTI) -- Iran has agreed to take payments for oil it sells to India entirely in rupees to dodge the U.S. and western sanctions.
India has been, since July 2011, paying in euros to clear 55 percent of its purchases of Iranian oil through Ankara- based Halkbank. The remaining 45 percent due amount was remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank.
Payments in euro through Turkey ceased from February 6 this year but the rupee payments for 45 percent of the purchases continued through Uco Bank, government sources said.
Iran explored taking 55 percent payments in Russian Rouble and other currencies but the payment routes could not be finalized due sanctions against the Persian Gulf nation.
Sources said Iran has now agreed to take all of their payment in Indian rupees.
As the euro route was blocked and Iran did not indicate an alternate mode of taking payment for 55 percent of the oil it sold to Indian refiners, over 1.5 billion dollars in dues got accumulated.
Tehran has now agreed to take this overdue amount in rupees, they said, adding that the entire overdue amount will be cleared within a month.
India had in 2012-13 imported 13.14 million tons of crude oil from Iran.
Iran can use the revenue accumulated in Uco Bank account to purchase "permissible" services and goods, such as food, medicine and basic medical equipment.
Iranians have already accumulated USD 5-6 billion in the Uco Bank account and ways are being explored to see how Tehran can use that revenue either by increasing import of food grains or tools and machinery including cars and tractors.
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| Last Updated on 14 July 2013 17:00 |