With stalemate continuing over the mode of payment for crude oil imported from Iran, India today said the two sides are exploring all the options to resolve the five-month-old issue, PTI reported.
"The two sides held detailed and constructive discussions for two days on the various options for resolving the issues relating to settlement of payments. Both the sides agreed to continue their engagement in the matter," a finance ministry statement said.
A delegation from Iran met officials from different ministries here to discuss issues relating to settlement of payments on account of bilateral trade.
The Indian side was led by Economic Affairs Secretary R Gopalan while Hamid Borhani, Deputy Governor of Central Bank of Islamic Republic of Iran, was leading the Iranian side.
India is reportedly mulling using multiple currencies, including the rupee, to pay for crude oil imported from Iran.
Seyyed Mohsen Qamsari, an official of National Iranian Oil Company (NIOC), said the two sides were discussing various currencies to make the payment.
"India has various currencies and forex reserves. We have given them flexibility to use any currency. Now, it is up to them; We have no problem," he told reporters.
Besides the rupee, the euro may also be used to pay for a part of the 12 million barrels of oil imported from Iran every month. Some payments, according to the sources, could be routed through countries like Turkey.
Iran is the second largest supplier after Saudi Arabia.
The payment problems surfaced after RBI on December 23 last year did away with the Asian Clearing Union (ACU) mechanism for making payments for Iranian crude oil imports, which make up for 12 per cent of the nation''s oil needs.
India had in February started making euro payments through an Iranian bank based in Germany. But Germany soon wilted under the US pressure and stopped accepting money from India for onward transfer to Hamburg-based EIH Bank.