In­dia inks pact with Iran to pay crude bill in ru­pee

The Northlines - - BUSINESS - New Delhi, Dec 07

In­dia has signed an agree­ment with Iran to pay for crude oil it im­ports from the Per­sian Gulf na­tion in ru­pees, sources in know of the devel­op­ment said.

The mem­o­ran­dum of un­der­stand­ing ( MOU) was signed fol­low­ing the US let­ting In­dia and seven other na­tions to keep buy­ing Ira­nian oil de­spite sanc­tions were reim­posed on the Is­lamic state on Novem­ber 5. Sources said In­dian re­fin­ers will make ru­pee pay­ments in a UCO Bank ac­count of the Na­tional Ira­nian Oil Co ( NIOC). Half of these funds would be ear­marked for set­tling pay­ments for ex­ports of In­dian goods to Iran, they said.

Un­der US sanc­tions, In­dia can ex­port food­grains, medicines and med­i­cal de­vices to Iran. In­dia had won the ex­emp­tion af­ter it agreed to cut im­ports and es­crow pay­ments.

Un­der the 180- day ex­emp­tion, In­dia is al­lowed to im­port a max­i­mum of 300,000 bar­rels a day of crude oil. This com­pares to an av­er­age daily im­port of about 560,000 bar­rels this year.

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