New sanctions on Iran pose problem for India's oil payments

India may face problems in making payments for crude oil it buys from Iran because of recent moves by the US to curb Tehran's nuclear programme, a top government official said today.

India currently pays Iran about $1 billion every month through Turkey for the 370,000 barrels per day of crude oil it buys from the world's fourth-largest oil producer.

"There are chances that Turkey may come under pressure after a fresh round of US sanctions imposed on Iran," the official, who wished not to be named, said.

Routing payments through Russia was discussed during the visit of Prime Minister Manmohan Singh to Moscow last month. But Russia is not keen due to "complexities" involved.

US President Barack Obama signed a Bill into law late last month empowering US authorities to impose penalties on foreign banks dealing with the Central Bank of Iran to settle oil import payments.

National Security Advisor Shivshankar Menon yesterday chaired a meeting of officials from the Ministries of Finance, Petroleum and External Affairs and the Reserve Bank of India after indications from Turkey's state-run Halkbank that it would have to stop settling payments on behalf of Indian companies.

The official said a multi-disciplinary team would visit Tehran later this month to discuss the issue of uninterrupted supply.

New Delhi, however, sees no supply disruptions unless the Strait of Hormuz is closed.