Money aside: Iran, India plan to set up barter trade

Business Materials 5 September 2012 14:03

Azerbaijan, Baku, Sept. 5 /Trend S.Isayev, T. Jafarov/

Iran and India will be signing a new agreement on a barter trade, Iran's Energy Minister Majid Namjoo said, Mehr reported.

Namjoo explained that Iran has decided to use India's sources for realizing projects in the Islamic Republic, instead of receiving money from oil shipments.

Iran's energy minister noted that Iran has proposed a deal to India, and the negotiations with Indian officials are scheduled to take place in the near future.

Namjoo added that Iran will prepare project plans and will showcase them in India after an agreement has been signed.

Due to numerous sanctions imposed on Iran, the Islamic Republic has been experiencing tough times receiving money from its oil exports. In particular Iran is unable to receive Euros and U.S. dollars for its crude.

According to Reuters, India's oil imports from Iran fell by more than 40 percent in July from June and a year ago. India currently is world's fourth-largest oil importer.

Refiners in India, Iran's biggest oil client after China, have struggled to find insurance and shipping for imports since the European Union brought in sanctions on July 1 banning most major insurance firms from covering Iranian oil shipments.