A multi-disciplinary ministerial team will leave for Iran on January 16 to work out the modalities for a ‘payment plan' to ensure smooth supplies of crude oil from Tehran, the second biggest exporter of oil to India, in view of impeding U.S. sanctions against Iran.
India is one among the biggest importers of crude oil from Iran. Japan is the biggest importer followed by South Korea. All are close U.S. allies and there is a feeling that any sanctions to block supplies will badly hit their people and the economy. Therefore, a channel needs to be opened with the U.S. to either ensure payment for the oil through some source or to ensure that crude oil imports are exempted from sanctions
Under the proposal being prepared, National Iranian Oil Company will open a rupee account with Indian banks and can use the money to purchase non-strategic items like railway imports and buying commodities. It cannot, however, use the money to invest in India or buy shares or companies. A list of what Iran can do with the money and what it cannot is being prepared.
