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Indian Refiners to Pay Iran in Rupee for Oil, Says Report

The Indian refiners will pay for oil from Iran in rupee from November 4 when petroleum-related sanctions against the country come into effect, source reported.

 

The government has identified UCO Bank and IDBI Bank for the oil payment to Iran since these banks do not have any exposure to the US financial system, source told.

 

UCO Bank will be the preferred partner as it has handled such transactions in previous sanctions, added the sources.

 

Like last sanctions, Iran could use the rupee to pay for imports from India, as per the report.

 

India receives nearly a tenth of its crude supplies from Iran and it is Iran's second-biggest client. According to the report, India is offering to cut its oil purchase from Iran in order to get a waiver from the US to continue its imports.

 

Without the waiver, the transaction with Iran risks is cutting India off the US financial system.

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