India's oil import dues: Iran says working on technicalities

Iran today said its central bank and government officials are working on "technicalities" with their Indian counterparts with regard to payment settlement of India's oil import dues worth over USD 6.5 billion.
"I don't think it is a major issue. We are talking about the economic cooperation. Iran is investing in energy sector in India and India is investing in infrastructure space there," Iranian Foreign Minister Javad Zarif said today.
"Our central banks and federal officials are working on technicalities in this regard," Zarif told reporters here when asked about the dues worth over USD 6.5 billion that Indian oil companies owe to Iran.

Zarif, who arrived here last night, met Prime Minister Narendra Modi and External Affairs Minister Sushma Swaraj, among others, earlier in the day.
He is the first key minister of Iran to come to India after the historic nuclear pact between Tehran and the Western countries in July which will lead to lifting of sanctions.
During his meeting with Prime Minister Modi, Zarif said Iran considered India a "strategic partner".

Iranian Ambassador to India Gholamreza Ansari recently ruled out any 'emergency or urgency' in getting back USD 6.5 billion oil import dues from India and had proposed that a part of this corpus can be invested in Indian projects there.

The assurance assumes significance as there were concerns that India might have to make immediate payments to clear these dues after lifting of the Western sanctions on Iran. The dues have been pending largely because of curbs on the banking and payment channels connecting Iran.
As per the estimates, more than half of the crude oil bill has remained uncleared in the past two years and has grown to more than USD 6.5 billion (over Rs 41,000 crore).
India has maintained a trade relation with Iran despite the sanctions, especially in terms of crude oil imports.
As per estimates, India has been Iran's second biggest oil customer after China. Iranian oil has been imported by private as well as public sector refiners in India.

State-run Indian Oil Corp's Director (Finance) A K Sharma had yesterday said that India will soon make some part payments and the government is working out modalities and the quantum.