Iran Press/ Asia: Surab Kumar, told ISNA news agency that India’s oil imports from the Islamic Republic has not been cut, and that New Delhi has been purchasing an average of 1.25 million tons of crude oil from Iran during the past few months.
Commenting on efforts to eliminate the US dollar in trade and business transactions between Tehran and New Delhi, the ambassador said India’s UCO bank has opened rupee accounts for several Iranian banks so they can deposit the oil money in those accounts. The mechanism will be operational in less than two weeks, he added.
India, Iran’s second biggest oil customer after China, has been granted a sanctions waiver to import some 300,000 barrels per day of Iranian oil for 180 days, starting from Nov. 5.
India and Iran agreed to use a 50% rupee-based payment and 50% export commodities mechanism in their trade.
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In further comments India’s ambassador to Tehran said, New Delhi and Tehran are making every effort to ensure the continuation of future trade in both oil and non-oil sectors.
ُSurab Kumar announced on Wednesday that the two sides had agreed to sign a preferential trade agreement (PTA), and to go ahead with a joint investment project in the near future.
The preferential trade agreement (PTA) will be signed during an Iranian delegation’s trip to India, he said.
Kumar added that Iran-India trade volume can reach $20 billion, from its present $15 billion per year if the necessary grounds are provided.
India's total demand for crude oil is 4.6 million barrel a day, which ranks the country as the third largest consumer of crude oil after the United States and China. India receives 80 percent of its oil needs from Iran.
The US, following withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, announced its' intention to reduce Iran's oil exports to zero.
But later the Trump administration was forced to grant waivers to eight countries including India to continue purchasing Iran’s crude oil aimed at preventing an oil price hike. 213/ 211 / 105
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