India began paying for Iranian crude oil in rupees, Charan Singh, executive director at Indian state-owned UCO Bank told Reuters on January 8th.
This is the first such payment since the US reimposed its second batch of sanctions on November 5th, 2018. This is in continuation of a previous story, in which India said it had not yet worked out a payment mechanism to circumvent the sanctions.
India was one of eight countries that received a six-month waiver from the sanctions, allowing them to import some Iranian oil.
“India, the world’s third biggest oil importer, wants to continue buying oil from Iran as it offers free shipping and an extended credit period, while Iran will use the rupee funds to mostly pay for imports from India,” Reuters reported.
“Today we received a good amount from some oil companies,” Charan Singh said. He did not disclose the names of the refiners or how much had been deposited.
ZeroHedge reported that this takes place amid reports that India is planning on circumventing the US dollar in oil trades with Russia, Venezuela and Iran. The trades would be made either in rupees or under a barter agreement….