India To Take Moscow Route To Channel Oil Payments To Tehran

[Purveyor]

Siddhartha P Saikia , Huma Siddiqui | New Delhi | Published: Oct 22 2014

India oil refiners’ payments to Iran, which continue to be stymied by sanctions on Tehran despite interim leniency shown by the US and five other world powers to the Persian Gulf country, may finally get easier with Moscow agreeing to play intermediary. Russia, which recently signed an agreement with Iran for oil purchases from the West Asian country, would institute an oil swap mechanism with India that will mean that practically New Delhi will have to pay Russia for Iranian oil with Moscow assuming the risk of routing the funds to Tehran.

The new arrangement, sources said, may be part of a package deal encompassing defence and energy sectors that India and Russia are slated to negotiate in detail during President Vladimir Putin’s visit to India in December. India’s immediate payment to Iran of $900 million in two tranches beginning next week will be made through the existing mechanism where Indian oil companies deposit funds in rupees in an Indian bank.

Iran then appropriates the money based on a series of back-to-back transactions in different currencies that are initially channelled through the Reserve Bank of India (RBI).

Indian oil refiners’ combined dues to Iran currently stand at close to $6 billion. Frozen oil revenues from India and elsewhere have been a problem for Iran for the last few years.

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According to sources privy to the discussions between the India and Russia, the idea is to streamline payments for oil shipments from Iran. They added that energy security, besides defence trade, will be topping the agenda of Putin’s visit to India. “Both sides are working on a ‘vision document’ that will be released during the summit where energy security will be a highlight. It will be dealing with three major areas: gas pipeline; oil pipeline and most importantly getting the Iranian crude oil to India through Russia,” said an official.

more...

http://www.financialexpress.com/news/india-to-take-moscow-route-to-channel-oil-payments-to-tehran/1300740

[Wellstone ruled]

1. You new thiss was coming.

The Bricks are tired of the IMF screwing them over. Putin is working the Oil Trade to his advantage,going to get interesting. Wonder who the NSA-Oil-IMF attacks next? Kerry has to clean house and get rid of all those Bush hold overs.

[Aerows]

2. The handwriting was on the wall

The IMF has been mishandling things to the point where it is beginning to show, and not everyone is going to fall in line as they have in the past.