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Iran Oil Payment Solution Sighted by India

Source: Moj News

Days after Iran warned it will stop crude oil supplies to India over payment defaults, the Indian government said a solution to the over six month long row was in sight.

"There is a mechanism (of making payments for Iranian oil) that we are working on. We are very close to a solution. There are banks in multiple countries that have been identified for routing our payments to Iran," a senior Indian government functionary who refusing to be identified has announced.

"I cannot reveal more because the moment we identify the banks or countries willing to help us pay for Iranian oil, they will come under pressure from certain countries and may back off. All I can say is that payments will be made in euro," he said.

Iran is supplying some 4,00,000 barrels a day of crude to India on credit since late December last year when the Reserve Bank of India scrapped a long-standing mechanism to pay for import from the Persian Gulf nation using a clearing house system run by regional central banks.

"The situation is grave. We need to find an alternative to the scrapped payment mechanism," the official said.

Outstanding payments have now topped $6 billion. Iran is India's second largest oil supplier, accounting for 12 per cent of its needs.

... Payvand News - 07/05/11 ... --

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