Iran oil payments row: Early resolution, says India
20 Jul 2011
New Delhi: With Iran again repeating a threat to suspend oil supplies to India from next month if an ongoing payments row with Delhi fails to be resolved, a junior Indian minster has clarified that there could be an early resolution to the matter.
Because of a lack of payment outlets, owing to UN sanctions against Iran, Delhi has run up bills of close to $5 billion.
According to minister of state for petroleum, RPN Singh, "It is (the payments issue) a subject of the Department of Economic Affairs. It is deliberating on the issue. We are hopeful of a solution to India's energy needs," he informed media outlets.
It is estimated that India lifts 18 milion tonnes of crude a year from Iran, which is close to 13-17% of its total crude imports.
The payments crisis erupted when India's central bank suspended payments through the regional transaction forum, the Asian Clearing Union. Existing UN sanctions do not allow payments to be made to Iran through any other facility and India and Iran area at a loss to work out modalities for outstanding dues to be cleared.
"It is highly likely that if the problem with reception of the money isn't resolved, Iran won't export oil to India in August," the state-controlled Fars news agency quoted an unnamed Iranian oil official as saying Monday.
