- Indian refiners pay for Iranian oil using Chinese yuan through ICICI Bank
- The US granted waivers last month to buy Russian and Iranian oil to stabilise markets
- The government stated that such transactions are entirely within the rules
Indian refiners are making payments using Chinese yuan for the limited cargoes of Iranian oil they are buying under the temporary US sanctions waver, according to a report by Reuters. The transactions are being routed through ICICI Bank, the report added. Reacting to this, the government has said that such transactions are entirely within the rules.
The purchases follow Washington's waivers last month, allowing countries to buy Russian and Iranian oil at sea to stabilise the global energy markets driven up by the US and Israel's war with Iran.
While the US has renewed the waiver on Russian oil, the one on Iranian crude will lapse tomorrow, with Treasury Secretary Scott Bessent asserting earlier this week that the US would not extend the relief.
Read: India Gets Iranian Oil For First Time In 7 Years
While difficulties over arranging payment have deterred some potential buyers, some refiners have gone ahead and purchased millions of barrels of Iranian oil at sea.
These include India's first purchase of Iranian crude in seven years, with the state-run Indian Oil Corp buying two million barrels on board the very large crude carrier Jaya, worth $200 million, Reuters reported, adding that four other vessels carrying Iranian oil have also been allowed to berth in India.
The payments for these oil deals are being settled by the ICICI Bank, which is routing the funds in Chinese Yuan to settler accounts, the report added.
Read: "No Payment Hurdle For Iranian Crude Imports": India Dismisses Rumours
There is nothing incriminating in this, a top official has said, reacting to the report.
"Meeting our domestic need is the important thing for us. Our OMCs are operating within the rules," said Sujata Sharma, Joint Secretary, Ministry of Petroleum & Natural Gas.
The prolonged war between the US, Israel, and Iran has choked the Strait of Hormuz, a maritime route that handles one-fifth of the world's oil passage, resulting in sky-high crude and gas prices. India, however, has remained less impacted compared to other countries in the Asia Pacific.
