India Uses Yuan Payments for Iran Oil Trade: Report

Indian oil refineries are making payments in Chinese yuan for Iranian oil purchased under a temporary waiver of US sanctions through Mumbai-based ICICI Bank.

The foreign news agency Reuters, citing four informed sources, said that last month the United States granted a 30-day exemption for the purchase of Russian and Iranian oil in order to reduce rising oil prices due to the war.

According to Reuters, payment difficulties due to long-standing sanctions on Iran have deterred many potential buyers from buying Iranian oil.

According to the report, earlier this month, India’s state-owned company Indian Oil Corporation purchased about 2 million barrels of Iranian crude oil worth about $200 million, which was India’s first official purchase of Iranian oil in seven years.

The source said that India also allowed four ships carrying Iranian oil for private refinery Reliance Industries to dock.

The report further added that both refineries are using ICICI Bank for payments, which is transferring money in Chinese yuan to the sellers’ accounts through its Shanghai branch, but the identities of the sellers are unknown.