India: Report – Iran Seeking Yen Payments For Oil
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Tuesday, 24 January 2012 |
Bloomberg reports report that Iran has sought payment for oil in Yen as both nations strive to organise a payment mechanism for India’s state-run firms to import crude from Iran despite tightening economic sanctions. Citing “three people with knowledge of the matter”, who could not be named as negotiations are ongoing, the financial news site says that India proposed to pay for oil in rupees, but that the more convertible Yen was preferred by Tehran officials.
The Reserve Bank of India abolished a mechanism, under which Iran’s Central Bank received payment for crude from refiners in Euro and Dollars, in December 2010. Though India’s oil firms switched to the Ankara-based Turkiye Halk Bankasi AS (HALKB) to facilitate payment, the bank may not be able to manage this transaction in the future as harsher economic sanctions are adopted towards Iran. European Union foreign ministers met in Brussels yesterday to discuss an oil embargo and economic sanctions against Iran – this would build on measures already adopted by the United States.
According to the report, Indian officials are currently investigating whether it will be possible to organise stable Yen payment facilities.
PetrolWorld 24012012
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