Jan 11, 2019, 12:59 PM
News Code: 83166548
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India stresses trade ties with Iran

New Delhi, Jan 11, IRNA - India to work with Iran without violating any international laws, Indian commerce minister said.

“India will not violate any international law and within the framework of international law, we would like to work with Iran in a manner that we can deal with Rupee trade wherein both countries can trade the items of mutual interest,' Indian Commerce and Industry Minister Suresh Prabhu told reporters.

“So Iran wants to buy something from India and we want to buy oil,” the minister added, Press Trust of India reported.

In May last year, US President Donald Trump withdrew from the 2015 nuclear accord with Iran, re-imposing unilateral economic sanctions against the Persian Gulf nation. Some sanctions took effect from August 6, 2018, while those affecting oil and banking sectors kicked in from November 4.

India's UCO Bank and IDBI Bank have been identified to route the payment as the two have no exposure to the US financial system. Iran is India’s third-largest oil supplier behind Iraq and Saudi Arabia. It was India’s second biggest supplier of crude oil after Saudi Arabia till 2010-11 but Western sanctions relegated it to the seventh spot in the subsequent years.

In 2013-14 and 2014-15, India bought 11 MT and 10.95 MT, respectively from it. Iranian oil is a lucrative buy for refiners as the Persian Gulf nation provides 60 days of credit for purchases, a term not available from substitute suppliers of crude -- Saudi Arabia, Kuwait, Iraq, Nigeria, and the US.

Bilateral trade between India and Iran increased to $13.8 billion in 2017-18 from $12.9 billion in the previous fiscal year. However, India’s exports were only worth $2.5 billion to that country, Press Trust of India reported.

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