Iran- India to resolve oil payment issue today

Oil&Gas Materials 31 May 2011 14:45 (UTC +04:00)

Iran and India will discuss the ways of payment for Iran's oil export to India today, Iranian MojNews reported with reference to Financial Express quoting Vice Governor (Foreign Exchange Affairs) of Central Bank of Iran (CBI) Hamid Borhani, as saying.

Bohrani told reporters "we hope the issue will be resolved today''.

Borhani launched talks with India's Economy Minister Ar Guplan on Monday night in New Delhi.

India is expected to pay for import of Iran's crude oil through Turkish banks by different currencies, including rupee and euro.

The tension between two countries for oil payment started in December 23 when India's Central Bank (Reserve Bank of India) placed restrictions on transactions with Iran through the Clearing House System (Asian Clearing Union) that Washington believes Tehran has been using to bypass international sanctions.

India has agreed to stop paying for its Iranian oil imports via Germany since the German chancellor Angela Merkel had intervened by instructing Germany's central bank (Deutsche Bundesbank) to stop clearing payments from India headed to the bank, known as EIH, which is under U.S. but not EU sanctions.

Iran is the second-largest crude supplier to India after Saudi Arabia and accounts for about 14% of the country's oil import bill.