"Sanctions that Bite?" India raised the amount of crude oil imported from Iran by 53 percent.(Fars).Tehran - Iran and India resolved their oil payment issues after they agreed to accept payment in rupee term, a move that could unlock huge sums pending on both sides.Exporters body Federation of Indian Export Organizations (FIEO) said on Friday that the long-pending issue of payments with Iran has been resolved, and shipments to that country will now be paid in Indian rupees. "The payment problem with Iran has been resolved with operationalization of rupee payment mechanism through UCO Bank," FIEO president Rafeeque Ahmed said in a statement on Friday. "Those payments which have been stuck will be cleared expeditiously." He said "such positive action" by the government would encourage exporters to aggressively export to Iran and optimize utilization of the rupee balance in oil import pool.
A high-level delegation of Indian officials, including businessmen, is slated to visit Tehran on March 10 to explore the huge business potential specially left open after the new round of US and EU sanctions against Iran.The Directorate-General of Foreign Trade (DGFT) has also agreed to grant all export benefits to exporters for which payment is received in Indian rupee and a notification will be issued soon.
The problem with Iran began after the Reserve Bank of India (RBI), in December 2010, withdrew the Asian Clearing Union (ACU) mechanism under which payments were made to Iran. India imports 12 million barrels of crude oil every month from Iran, which is the nation's second-largest supplier after Saudi Arabia. According to Lloyd's List Intelligence, India raised the amount of crude oil imported from Iran in January to 16.2m barrels. This represented a jump of 53% compared with the previous month and is two-thirds higher than average levels recorded last year. Hmmmm.......Price of gas in India is now around $ 5/Gallon, soon it will be cheaper......Obamanomics!Read the full story here.
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