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Iran, India reaches final agreement on oil debts

Oil&Gas Materials 31 July 2011 17:27
Iran and India reached final agreement on oil payment where India will pay part of debts to Iran this week, Mehr News Agency reported quoting Managing Director of National Iranian Oil Company Ahmad Ghalebani as saying.
Iran, India reaches final agreement on oil debts

Azerbaijan, Baku, July 31 /Trend/

Iran and India reached final agreement on oil payment where India will pay part of debts to Iran this week, Mehr News Agency reported quoting Managing Director of National Iranian Oil Company Ahmad Ghalebani as saying.

" By negotiations done between Iran and India , two parties agreed that debt should be paid as soon as possible ," he said.

in the coming days part of this debt will be paid and the rest would be paid gradually by Indian customers, he added.

Iran's oil export to India reduced by 90,000 barrels of oil per day from July 23 however the Oil Ministry says the reduction is temporary and due to technical problems in India's oil Terminals and not over India's debts.

Despite India's debt, Iran continues to export 400,000 barrels of oil per day worth one billion dollar per month to India.

Previously the Governor of Central Bank of Iran Mahmoud Bahmani announced India's debt over Iran's oil payment is $5 billion while Iran attempts to resolve the problem of money transfer.

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 percent of the country's oil import bill.

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