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Iran tells India to pay for oil ‘only in euros’

Iran says it wants India to pay outstanding oil dues in euros.

Iran says it wants India to pay outstanding oil dues in euros, stressing that it needs the euros to pay the installments for the loans it has received for its infrastructure projects.    

Hossein Yaqoubi-Miab, the director for international affairs department of the Central Bank of Iran (CBI), said that preparations have already been made by Tehran to receive euro payments from India as soon as the sanctions are lifted. 

The landmark nuclear deal reached between Iran and the P5+1 group of countries – the five permanent members of the Security Council plus Germany – has paved the way for releasing Iran’s blocked petrodollars.

India has already started the proceedings to make the outstanding payments to Iran in several installments each valuing at several hundred million dollars. 

Yaqoubi-Miab emphasized that once the sanctions are lifted, a large share of the cash for Iran that has been frozen in Indian accounts will be transferred to government accounts in Tehran, Shana reported.

He said Iran wants its assets that have been frozen in Indian accounts to be transferred to Iran immediately after the removal of the sanctions.

Indian refineries should pay some $6.5 billion in outstanding oil dues. The country’s media had earlier said the refineries will make payment in rupees to India’s UCO Bank which will exchange the money into US dollar and transfer it into the Central Bank of Iran’s account with Oman’s Bank Muscat.

Essar Oil has to pay Iran about $3.1 billion, Mangalore Refinery and Petrochemicals Ltd owes $2.8 billion, and Indian Oil Corp owes $581 million. HPCL-Mittal Energy Ltd (HMEL) has to pay $97 million and Hindustan Petroleum Corp owes $29 million.

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