Govt may finalize Iran oil payment route soon

Govt may finalize Iran oil payment route soon

New Delhi: India may finalize routing of funds as payment towards Iran oil imports in the next few days, petroleum secretary S Sundareshan said on Wednesday.

“Pending resolution, there will be no disturbance in supplies as Iran will continue to supply oil on the basis of guarantees given by the companies. In the next few days, specific routing of funds (for oil imports from Iran) will be finalized," he told reporters.

The two nations have so far not been able to find a solution on how New Delhi should pay for oil imports from Iran after India’s central bank said last month that payments to the middle eastern nation could no longer be settled using a long-standing clearing house system run by regional central banks.

The decision, taken weeks after US President Barack Obama visited India, was praised by Washington, which said the move would reduce funds available to Tehran to support its nuclear activity, which the US believes is aimed at building an atomic bomb.

India imports 400,000 barrels of crude per day from Iran, a trade worth roughly $12 billion per year.