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India to import Iranian oil using rupee payment mechanism: source

Reuters  |  NEW DELHI 

By Neha and Mayank Bhardwaj

NEW DELHI (Reuters) - will import from using a rupee-based payment mechanism, an industry source involved in discussions told on Thursday, adding that 50 percent of those payments will be used for exporting items to

India's state-owned is expected to announce the payment mechanism in the next 10 days, the source said.

"An agreement had been signed by the on Nov. 2 2018 for in rupees and 50 percent of those funds had been earmarked for exports," according to an Indian government document reviewed by

are being made in rupees only as against earlier arrangements where there was a ratio of 45 percent rupees and 55 percent euros, the document said.

Russian and Chinese shipping companies were pitching to facilitate India-trade, the source said.

Under U.S. sanctions, will be allowed to export farm commodities, food, medicines, and medical devices to

However, items such as petroleum and petrochemical products, automobiles, steel, precious metals and graphite are not allowed to be exported to

(Reporting by Neha and Mayank Bhardwaj; Editing by and Martin Howell)

(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: Thu, December 06 2018. 18:44 IST