Iran works on transfer of payments with India

Hit by US sanctions, Tehran said on Tuesday that it is working with New Delhi to find a mechanism for sorting out the issue of making rupee payments for oil purchases.

“The Indian government has made a payment of Rs 1,00,00,00,000 for oil but Indian banks have refused to part with money and no Iranian bank has a branch here.

We are working on a mechanism,” deputy minister for Asia, Oceania and Commonwealth (Central Asia) Seyyed Abbas Araghchi said. After the RBI in December 2010 clamped down on settling payments via the Asian Clearing Union route, 55% of Iranian oil imports are being paid in euros via Turkey’s Turkiye Halk Bankasia. The rest was paid in rupees via UCO, sources said.