Twitter
Advertisement

Centre banking on EU to find ways to buy Iran oil

Earlier, India was looking at the possibility of falling back on the rupee-rial arrangement for importing oil from Iran in the wake of US sanctions

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Even as Chennai Petroleum has decided to stop processing Iranian crude oil from October to keep its insurance coverage, highly placed sources in the government here said that India was exploring a way out with the European Union for an alternative channel of making payments to Tehran for buying petroleum products.

Sources said that the 28-nation bloc EU has conveyed New Delhi that they were in process of devising a payment mechanism as US dollars for oil transaction will be restricted post November 4 when the US sanctions come into force. The EU has promised to protect its business interests against the impact of US sanctions against Iran. European investment in Iran has exploded since the nuclear deal was agreed two-and-a-half years ago. EU exports to Iran in goods and services totaled €10.8 billion ($12.9 billion) last year, and imports from Iran were worth €10.1 billion.

Sources said while India is in touch with both Iran and the US on the complex issue, it is banking upon the EU stance to explore an alternative mechanism of payments. Earlier, India was looking at the possibility of falling back on the rupee-rial arrangement for importing oil from Iran in the wake of US sanctions. 

But the Trump Administration seems so serious this time and it has told India and other countries to cut oil imports from the Gulf nation to “zero” by November 4 or face sanctions. 

India has asked Afghanistan—close ally of the US in the region – to take up the case and apprise Washington the significance of strategic relationship between India and Iran. 

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement