India exploring ways of making oil payments to Iran

suchithkc

New Delhi, Jan 7 (: India is exploring all options to find a way out to make oil payments to Iran as there are chances that Turkey, through which it is making payment, may come under pressure after a fresh round of U.S. sanctions imposed on Iran.

India currently pays Iran about $1 billion every month through Turkey for the 370,000 barrels a day of crude oil it buys from the world's fourth-largest oil producer.

According to sources, India is holding talks with Russia for routing payments to Iran. Discussions with United States are also going on for a possible relaxation or waiver in the sanctions.

Government sources said: " Unilateral sanctions tend to affect the oil markets. We are exploring all options"

The problem of making payments for the crude oil to Iran has cropped up due to the recent move by the U.S. Government to curb Tehran's nuclear programme.

U.S. President Barack Obama signed a Bill into law late last month, empowering U.S. authorities to impose penalties on foreign banks dealing with the Central Bank of Iran to settle oil import payments.

Iran has threatened to block oil deliveries through the Straits of Hormuz if sanctions are imposed on the country's oil industry over its nuclear activities.

The U.S., six Gulf nations, including Saudi Arabia and Iran, supply 58 per cent of India's total annual consumption of 163.59 million tonnes of crude. The closure may also hinder the 7.5 million tonnes of liquefied natural gas that Qatar ships through tankers each year to India.

A multi-disciplinary ministerial team would visit Tehran later this month to discuss the issue of uninterrupted supplies to India.

National Security Advisor Shivshankar Menon held a high-level meeting with officials from the Ministries of Finance, Petroleum and Natural Gas, External Affairs and the Reserve Bank of India on Thursday to chalk out a strategy to counter the crisis arising out of fresh U.S. and EU sanctions on Iran.