Oct 31, 2018 19:37 Asia/Tehran
  • Indian Oil Minister Dharmendra Pradhan
    Indian Oil Minister Dharmendra Pradhan

India's oil minister says in order to revive the trade mechanism in rupee, his country will soon sign an agreement with Iran in which New Delhi will use the rupee to trade with Tehran.

Iran Press/Iran News: India's Oil Minister Dharmendra Pradhan announced on Wednesday that he will sign an agreement with Iran on the revival of the trade mechanism in Rupee.

According to the agreement, the payment mechanism between India and Iran will change to the rupee, BTVI TV network of India reported in a tweet.

The text of the bill in parliament has come to an end and is likely to be signed in the next few days, the report said.

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The Central Bank of India has also agreed with Pasargad Bank of Iran to establish branches in India.

Dharmendra Pradhan has already informed about New Delhi's decision on the continued import of oil from Iran based on national interests, saying that India considers the US sanctions against Iran as a challenge because New Delhi has close ties with the Islamic Republic of Iran.

Meeting with Iranian foreign minister Mohammad Javad Zarif, last month on the sidelines of the U.N.'s annual meeting in New York, Indian foreign minister Sushma Swaraj stressed that her country will continue to purchase Iran's oil.

Zarif said after meeting, "Our Indian friends have always been categorical in terms of their intention to continue economic cooperation and (the) import of oil from Iran. And I heard the same statement from my Indian counterpart."

India is the second biggest purchaser of Iranian crude and Indian refiners imported around 10 million barrels of Iranian crude in October.

Beijing and New Delhi have thus far been defiant to Washington's call to stop buying Iranian oil, saying they abide only by sanctions imposed by the United Nations and not those imposed by any other country. 101/201

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