India and Iran ‘to clear $6.4bn oil payments via European banks’

The central banks of India and Iran have reportedly agreed to use European Banks to clear oil payments to Tehran. They are worth $6.4 billion (£4.4bn), Indian Oil Minister Dharmendra […]

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By Jacqueline Echevarria

The central banks of India and Iran have reportedly agreed to use European Banks to clear oil payments to Tehran.

They are worth $6.4 billion (£4.4bn), Indian Oil Minister Dharmendra Pradhan told reporters.

Buyers of Iranian oil were prevented from using global banking channels to clear their transactions after sanctions were imposed on Iran in 2011 over its nuclear programme which ended in January.

Reports claims Indian refiners have been holding 55% of its oil payments and due to previous sanctions they have been depositing 45% to Iran in rupees with India’s UCO Bank.

Mr Pradhan reportedly said: “There is an agreement between [India and Iran’s] central banks. European banks will be the clearing agent. They will be dealing with Iranian banks and we have to pay European banks.”