India pushes Iran to accept rupee for all crude oil

Or face the risk of losing its biggest client

The department of commerce under the ministry of commerce and industry has asked to accept payment for imports by entirely in rupees or face the risk of losing its biggest client. currently pays 55 per cent of its purchases from in rupees and the rest in euros.

“We are pursuing them (Iran) to accept 100 per cent (payment) in rupees; they are pondering over it. They will have no other option. We have also told them that either they go for the option or we might have to look for other options,” a senior official told Business Standard, indicating might look at increasing its purchases from other markets such as Venezuela.

exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Iran, all of which are permitted under the US-imposed sanctions. Hence, the department has urged to buy these items with it is obtaining from selling oil.

URGING TEHERAN
  • pays 55% of its purchases from in rupees, rest in euros
  • It exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Iran
  • Hence, it is urging to buy these with the it is getting from oil

According to the official, the government was expecting some warming up of relations between Washington and Teheran during the visit to Iranian President Hassan Rouhani to the US last month to attend the UN General Assembly meet where he was expected to meet US President Barack Obama. However, nothing fruitful emerged except for highly-publicised phone call between both the leaders, while sanctions remained intact.

Since July 2011, had been making payments in euro through Ankara-based Halkbank until February this year. While euro payments through Turkey are stuck, payments continue to be made on the accounts of Iranian National Oil Company through Kolkata-based UCO Bank.

has been pressing for all payments to be made through and the previous regime in had reportedly agreed to take entire payment in rupee. However, the new government under Hassan Rouhani is yet to accept this proposal.

“I do not know whether the Iranian government ever said that they were willing to take 100 per cent. My understanding is that there is a percentage agreed to between and in terms of how we will pay for crude and that is 45 per cent and 55 per cent,” Syed Akbaruddin, spokesperson, external affairs ministry said.

Following the US sanctions, cut its imports from to 13.3 million tonnes in 2012-13 from 17.4 mt in 2011-12.
 

image
Business Standard
177 22
Business Standard

India pushes Iran to accept rupee for all crude oil

Or face the risk of losing its biggest client

Nayanima Basu  |  New Delhi 

Crude Oil image via Shutterstock

The department of commerce under the ministry of commerce and industry has asked to accept payment for imports by entirely in rupees or face the risk of losing its biggest client. currently pays 55 per cent of its purchases from in rupees and the rest in euros.

“We are pursuing them (Iran) to accept 100 per cent (payment) in rupees; they are pondering over it. They will have no other option. We have also told them that either they go for the option or we might have to look for other options,” a senior official told Business Standard, indicating might look at increasing its purchases from other markets such as Venezuela.


exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Iran, all of which are permitted under the US-imposed sanctions. Hence, the department has urged to buy these items with it is obtaining from selling oil.

URGING TEHERAN
  • pays 55% of its purchases from in rupees, rest in euros
  • It exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Iran
  • Hence, it is urging to buy these with the it is getting from oil

According to the official, the government was expecting some warming up of relations between Washington and Teheran during the visit to Iranian President Hassan Rouhani to the US last month to attend the UN General Assembly meet where he was expected to meet US President Barack Obama. However, nothing fruitful emerged except for highly-publicised phone call between both the leaders, while sanctions remained intact.

Since July 2011, had been making payments in euro through Ankara-based Halkbank until February this year. While euro payments through Turkey are stuck, payments continue to be made on the accounts of Iranian National Oil Company through Kolkata-based UCO Bank.

has been pressing for all payments to be made through and the previous regime in had reportedly agreed to take entire payment in rupee. However, the new government under Hassan Rouhani is yet to accept this proposal.

“I do not know whether the Iranian government ever said that they were willing to take 100 per cent. My understanding is that there is a percentage agreed to between and in terms of how we will pay for crude and that is 45 per cent and 55 per cent,” Syed Akbaruddin, spokesperson, external affairs ministry said.

Following the US sanctions, cut its imports from to 13.3 million tonnes in 2012-13 from 17.4 mt in 2011-12.
 

RECOMMENDED FOR YOU

India pushes Iran to accept rupee for all crude oil

Or face the risk of losing its biggest client

Or face the risk of losing its biggest client
The department of commerce under the ministry of commerce and industry has asked to accept payment for imports by entirely in rupees or face the risk of losing its biggest client. currently pays 55 per cent of its purchases from in rupees and the rest in euros.

“We are pursuing them (Iran) to accept 100 per cent (payment) in rupees; they are pondering over it. They will have no other option. We have also told them that either they go for the option or we might have to look for other options,” a senior official told Business Standard, indicating might look at increasing its purchases from other markets such as Venezuela.

exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Iran, all of which are permitted under the US-imposed sanctions. Hence, the department has urged to buy these items with it is obtaining from selling oil.

URGING TEHERAN
  • pays 55% of its purchases from in rupees, rest in euros
  • It exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Iran
  • Hence, it is urging to buy these with the it is getting from oil

According to the official, the government was expecting some warming up of relations between Washington and Teheran during the visit to Iranian President Hassan Rouhani to the US last month to attend the UN General Assembly meet where he was expected to meet US President Barack Obama. However, nothing fruitful emerged except for highly-publicised phone call between both the leaders, while sanctions remained intact.

Since July 2011, had been making payments in euro through Ankara-based Halkbank until February this year. While euro payments through Turkey are stuck, payments continue to be made on the accounts of Iranian National Oil Company through Kolkata-based UCO Bank.

has been pressing for all payments to be made through and the previous regime in had reportedly agreed to take entire payment in rupee. However, the new government under Hassan Rouhani is yet to accept this proposal.

“I do not know whether the Iranian government ever said that they were willing to take 100 per cent. My understanding is that there is a percentage agreed to between and in terms of how we will pay for crude and that is 45 per cent and 55 per cent,” Syed Akbaruddin, spokesperson, external affairs ministry said.

Following the US sanctions, cut its imports from to 13.3 million tonnes in 2012-13 from 17.4 mt in 2011-12.
 
image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard