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India aims to sign pact with Iran for oil payments in rupees: sources

Reuters  |  NEW DELHI 

By Nidhi Verma

NEW DELHI (Reuters) - aims to sign an initial agreement with this month to settle all their trade in rupees through UCO Bank, two sources said.

"We have to do some paper work. It should be signed as early as possible. We are aiming for this month," one of the sources said.

India, which got a waiver from the latest tougher U.S. sanctions against on Monday, used a similar mechanism in the previous round of sanctions but settled only 45 percent of the payments in rupees.

used the funds to import goods from India, a move that had helped boost India's exports to

Paying for Iranian in rupees will also strengthen the Indian currency against the U.S. dollar.

Indian refiners will make payments in rupees for purchases of Iranian made since September, one of the sources said. grants a 60 day credit period to Indian refiners.

The sources also said the U.S. wants to restrict its monthly purchases of Iranian oil to 1.25 million tonnes, or 9 million barrels, during the waiver period from November.

The re-imposed sanctions on Monday to choke Iran's oil and shipping industries, while temporarily allowing top customers such as and to keep buying crude from the Islamic Republic.

India's was not immediately available to comment.

Indian Oil Corp, India's top refiner, and and Petrochemicals Ltd placed an order on Tuesday with to buy a total of 9 million barrels of oil in December, industry sources said.

IOC would buy 6 million barrels of Iranian oil, while MRPL would import 3 million barrels, the sources added.

Spokesmen for MRPL and IOC declined to comment.

(Reporting by Nidhi Verma; Editing by Alexander Smith)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 18:49 IST
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