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Iran agrees to take all oil payments from India in rupees

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posted on Jul, 14 2013 @ 04:46 AM

Iran has agreed to take payments for oil it sells to India entirely in rupees after US and western sanctions blocked all other payment routes.

India has been, since July 2011, paying in euros to clear 55% of its purchases of Iranian oil through Ankara- based Halkbank. The remaining 45% due amount was remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank.

Payments in euro through Turkey ceased from February 6 this year but the rupee payments for 45% of the purchases continued through Uco Bank, government sources said.

Iran explored taking 55% payments in Russian Rouble and other currencies but the payment routes could not be finalised due sanctions against the Persian Gulf nation.

Sources said Iran has now agreed to take all of their payment in Indian rupees.

As the euro route was blocked and Iran did not indicate an alternate mode of taking payment for 55% of the oil it sold to Indian refiners, over $1.5 billion in dues got accumulated.

Tehran has now agreed to take this overdue amount in rupees, they said, adding that the entire overdue amount will be cleared within a month.

India, which last month won another 180-day waiver from the US sanctions after it cut crude oil imports from Iran by over 27%, has not bought a single barrel of oil from the Persian Gulf nation since April as insurance firms refused to provide cover to refiners processing Iranian oil.

Imports will resume shortly after the insurance issue is fixed, sources said.

India had in 2012-13 imported 13.14 million tonnes of crude oil from Iran, down from 18.11 million tonnes of 2011-12. Iran was till 2010-11 India's second largest supplier after Saudi Arabia but has since slipped to the sixth place.

In 2012-13, Saudi Arabia was India's largest oil supplier selling 36.62 million tonnes of oil, followed by Iraq at 25.05 million tonnes, Venezuela 21.80 million tonnes, Kuwait 19 million tonnes and UAE 14.71 million tonnes.

Sources said this fiscal imports from Iran may just be around 10-11 million tonnes.

Iran can use the revenue accumulated in Uco Bank account to purchase "permissible" services and goods, such as food, medicine and basic medical equipment.

Iranians have already accumulated $5-6 billion in the Uco Bank account and ways are being explored to see how Tehran can use that revenue either by increasing import of foodgrains or tools and machinery including cars and tractors.

With US sanctions barring sale of any defence or technology intensive equipment, Iranian imports from India will continue to remain low. Also, New Delhi has not allowed Iranians to invest in its securities or debt.

Pretty good move by India and Iran can easily over come the deficit by purchasing Indian export items
Electrical & Mechanical Machinery, Vehicles, Pharmaceutical Products, Iron & Steel, Plastic & Articles, Cereals, Chemical Products, Rubber & Articles, Sugar & Sugar Confectionery, Animals & Vegetable Fats & Oil, Organic Chemicals,etc.

edit on 14-7-2013 by maddy21 because: (no reason given)

posted on Jul, 14 2013 @ 05:21 AM
reply to post by maddy21

Its not something new, there has been a lot of whispering of country's going to leave the petrodollar. ( for obvious reasons). At this point its the only decent weapon country's like Iran have. China has been pulling the strings for this to leave the Petrodollar, not sure about Russia though.

posted on Jul, 14 2013 @ 06:45 AM
reply to post by maddy21

Well. The petrodollar has somewhat overstayed it's welcome, with Libya. Iraq etc. subjected to the wrath of the US when they dared to propose an alternative means of paying for and gathering revenue from petroleum product sales.
I am really surprised that the nations of the middle east and Asia (and Russia) have not adopted this stance before now, after all, if they ditch the petrodollar en masse,what could the US actually do about it?

posted on Jul, 14 2013 @ 06:49 AM
The sanctions have nothing to do with Irans nuclear program, this is just a pre-war step that the ZioAmerican Alliance takes to weaken and isolate Iran before their planned attack to subdue the country. This part of operation Greater Israel, supported coup and foreign terrorists in Syria, backed by harsh sanctions on the Syrian people; The only anti-Zionists in the Middle East today are Iran and Syria.

Did I mention this has nothing to do with the nuclear program? Irans GDP was growing rapidly, a big country with massive innovative population that is capable of rivaling Saudi Arabia, Israel and combined. You can NOT create Greater Israel with a country like Iran on the doorsteps.

Sanctions are taking longer than they should to weaken Iran, Syrian civil war has also dragged on unexpectedly, Hezbollah has proven they are more than capable of fighting beyond their borders.

Irans economy could be way stronger than that of Turkeys had it not been sanctioned and boycotted for the past 30 years while Turkeys economy had been pumped with trillions from Europe.

posted on Jul, 14 2013 @ 07:38 AM
Well, Indian Rupees are as good as petrodollars if not better at present circumstance.

India should encourage her trading partners in ASEAN to do likewise.

posted on Jul, 14 2013 @ 08:11 AM
Some would say we invaded Iraq because Saddam was planning to sell oil to European countries for Euros.Thus undercutting the value of the petro-dollar.
It doen't look like that plan has worked out very well does it?

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