India to buy Iranian oil in rupees: Here’s how the agreement will work


India to buy Iranian oil in rupees: Here’s how the agreement will work

India will import crude oil from Iran using a rupee-based payment mechanism, an industry source involved in discussions told Reuters on Thursday.

“An agreement had been signed by the Indian and Iranian government on Nov. 2 2018 for oil payment in rupees and 50 percent of those funds had been earmarked for exports,” reads an Indian government document, reviewed by the agency.

India is among the eight countries exempted from US sanctions on Iran oil. The country receives nearly a tenth of its crude supplies from Iran and it is Iran’s second-biggest client.

Oil payments 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. Read More

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