ID :
156931
Wed, 01/12/2011 - 17:16
Auther :
Shortlink :
http://m.oananews.org//node/156931
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India to send delegation to Tehran to sort oil import impasse
New Delhi, Jan 12, IRNA -- An Indian delegation will visit Tehran on January 14 to decide on payment options for Iranian oil import in the wake of a controversy over the matter.
The Reserve Bank of India (RBI) on December 23 said oil and other import payments to Iran will have to be settled outside the existing Asian Clearing Union (ACU) mechanism, which involves the central banks of India, Bangladesh, Maldives, Myanmar, Iran, Pakistan, Bhutan, Nepal and Sri Lanka.
'The delegation will go on January 14,' Financial Services Secretary R Gopalan told reporters here, pti reported.
He said, 'We have to work out some currency other than dollar in which payments could be made (for Iranian oil).' In ACU mechanism, payments are made in Dollar or Euro.
Gopalan said options are to settle the payment in Euro, Yen and Dirham.
However, payments in Euro can still be made provided a certificate is given that imports are for oil only. But it is still not clear as to who will give the certificate.
India imports 12 million barrels of crude oil every month from Iran. Iran accounts for 12 per cent of India's supplies and is its second-largest supplier behind Saudi Arabia.
Till October 2010, the transactions between the two countries were carried out in euro through the ACU, which was set up in 1974. The clearing house settles trade transactions with Bangladesh, Bhutan, India, Iran, Nepal, Pakistan, the Maldives, Myanmar and Sri Lanka./end
The Reserve Bank of India (RBI) on December 23 said oil and other import payments to Iran will have to be settled outside the existing Asian Clearing Union (ACU) mechanism, which involves the central banks of India, Bangladesh, Maldives, Myanmar, Iran, Pakistan, Bhutan, Nepal and Sri Lanka.
'The delegation will go on January 14,' Financial Services Secretary R Gopalan told reporters here, pti reported.
He said, 'We have to work out some currency other than dollar in which payments could be made (for Iranian oil).' In ACU mechanism, payments are made in Dollar or Euro.
Gopalan said options are to settle the payment in Euro, Yen and Dirham.
However, payments in Euro can still be made provided a certificate is given that imports are for oil only. But it is still not clear as to who will give the certificate.
India imports 12 million barrels of crude oil every month from Iran. Iran accounts for 12 per cent of India's supplies and is its second-largest supplier behind Saudi Arabia.
Till October 2010, the transactions between the two countries were carried out in euro through the ACU, which was set up in 1974. The clearing house settles trade transactions with Bangladesh, Bhutan, India, Iran, Nepal, Pakistan, the Maldives, Myanmar and Sri Lanka./end
