Ambassador: India to continue buying Iranian crude oil

Iran Materials 25 February 2012 14:22 (UTC +04:00)

Azerbaijan, Baku, Feb. 25/ Trend F.Milad/

The Indian ambassador to Iran said that his country will continue buying crude oil from Iran, Fars news agency reported.

"The finance minister clarified for the U.S. that India will continue importing Iranian oil," D.P. Srivastava said.

He made the remarks in a meeting with the chairman of the Tehran chamber of commerce, Yahya Al-e Es'haq in Tehran on Tuesday.

India is set to ramp up its energy and business ties with Iran, with a commerce ministry team heading to Tehran to explore fresh business opportunities.

D.S. Rawat, secretary general of the Indian Associated Chambers of Commerce and Industry said that despite the U.S. and the EU sanctions on Iran, India's trade and investment with Tehran are headed for an upsurge.

"The potential of trade and economic relations between the two countries can touch the level of $30 billion by 2015 from the current level of $13.7 billion dollars in 2010-2011," said Rawat.

India has recently sealed a payment mechanism under which Indian companies will pay for 45 percent of their crude oil imports from Iran in rupees.

India continues to buy Iranian oil and expand economic relations with Iran.

Iran used to supply 12 percent of India's oil imports, but for some time its share has dropped to 10 percent.

Last week, as the European Union asked India to break talks with Tehran over its nuclear program, Prime Minister Manmohan Singh pitched for a resolution of the issue by giving "maximum scope" to diplomacy.