Iran is poised to meet India’s energy security needs, its ambassador to India said Friday, as negotiations between the world powers and Tehran to lift sanctions against the OPEC member continue.
Iran used to be India’s second-largest oil supplier, but New Delhi had to cut imports from Tehran after former US President Donald Trump withdrew from the Iran nuclear deal and re-imposed sanctions on its oil exports.
“The trading mechanism of the Rupee rial can help companies from both countries to deal directly with each other and avoid third-party brokerage fees,” said Ali Chegeni through the Indian facilitating body MVIRDC World Trade Center.
India, the world’s third largest oil importer and consumer, covers more than 80 percent of its crude oil needs with imports.
India and Iran had devised a barter-like mechanism to regulate trade where Indian refiners paid Iranian oil in rupees to a local bank and the money was used by Tehran to pay for imports from India.
As a result of sanctions, trade between India and Iran fell sharply from $17 billion in the fiscal year to March 2019 to less than $2 billion in April-January, the first 10 months of this fiscal year.
Mr Chegeni said: “If both countries launch rupee-rial trading mechanisms, bilateral trade could grow to $30 billion”.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)