Iran Press/Asia: India’s state-owned UCO Bank is expected to announce the payment mechanism in the next 10 days, an industry source involved in discussions told Reuters on Thursday.
"An agreement had been signed by the Indian and Iranian governments on Nov 2, 2018 for oil payment in rupees and 50 percent of those funds had been earmarked for exports," according to an Indian government document.
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, Reuters reported.
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Russian and Chinese shipping companies were pitching to facilitate India-Iran trade, the source said.
Under US sanctions, India will be allowed to export farm commodities, food, medicines, and medical devices to Iran.
India is the second biggest purchaser of Iranian crude oil and Indian refiners imported around 10 million barrels of Iranian crude in October.
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India's total demand for crude oil is 4.6 million barrel a day, which ranked the country third in the world's largest consumers 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 US administration has forced to grant waiver to eight countries including India to continue purchasing Iran’s crude oil aimed at preventing oil price hikes and would be granted in exchange for continued import cuts.105/205
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