India has bought the Iranian oil after 7 years amid the ongoing Middle East conflict after the United States gave waiver for the purchase. Indian refiners are settlingpayments for rare cargoesof Iranian oil using Chinese yuan through Mumbai-based ICICI Bank, opens new tab, Reuters said citing sources with knowledge of the matter said.
Difficulties over arranging payment for such cargoes given longstanding sanctions on Tehran have deterred some would-be buyers of Iranian crude under the waiver, traders have said.
India has been world's third-biggest oil importer and consumer. The country has not received a cargo from Tehran since May 2019, following US pressure not to buy Iranian crude, but supply disruptions from the war have hit the country.
Indian Oil Corp bought 2 million barrels of Iranian oil onboard the very large crude carrier Jaya in the country's first purchase of Iranian crude in seven years, Reuters reported, a cargo worth roughly $200 million.
Reportedly, India has also allowed four vessels carrying Iranian oil to berth for privately-run refiner Reliance Industries, Reuters sources said last week. A vessel, the MT Felicity, has discharged thus far, according to LSEG data and a shipping source.
During a media interaction on Friday, Sujata Sharma, joint secretary in the petroleum ministry, on the matter said the oil marketing companies were making all efforts to line up the cargo so that the domestic demand could be met, and said they were operating within govt rules.
Both refiners are settling the trade through ICICI, which is routing funds in Chinese yuan via its Shanghai branch to seller accounts in yuan. The identity of the sellers could not be determined, Reuters said.
The United States stopped India from buying Iranian oil primarily to enforce international sanctions aimed at restricting Iran's revenue and influence. The US has historically imposed sanctions on Iran to limit its nuclear program and regional activities.
Reports have also suggested that India remained among the top buyers of Russian oil since Moscow’s 2022 invasion of Ukraine.
Reports said India has used China’s currency to settle some of their Russian oil purchases as well.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
