Iranian Foreign Minister Javad Zarif and his team, including Deputy Minister of Industry, Mining and Trade Mojtaba Khosrowtaj, who were in New Delhi last week, met with senior officials at the Ministry of Commerce, where the two sides discussed ways to increase bilateral trade and balanced the benefits of reviving the Ruget Rial payment mechanism. , almost pending, implemented through the Indian bank UCO, as a government official told BusinessLine. The millennia-old relationship between India and Iran is based on strong contacts between people, the exchange of ideas and traditions, and cultural commonalities. There have always been exchanges between our peoples. They are not between 200 and 300 years old, they date back millennia. If you travel to India, you will find that these relationships are widely documented and reflected in our common culture and common heritage. As part of the 2012 exchange agreement following nuclear sanctions against Iran by a number of Western economies, including the United States, the United Kingdom, France and Germany, approximately 45% of oil payments to Tehran in rupees were made through UCO Bank. The rupee kittens with Iran quickly began to shrink after India completely halted crude oil imports from the country about six months ago. Under the agreement, India would have to import oil from Iran through a rupee-based payment mechanism, which provides for 50% of payments for oil imports to handle payments to exporters of other products from India.
While an old rupee payment window opened with UCO bank or IDBI bank can again be used to pay Iranian oil sanctions, a senior official, who speaks on condition of anonymity, said the Treasury has promised The Iranian bank Pasargad to set up a branch in Mumbai, which will also help India continue its oil deliveries with Iran and make payments from the country. “The biggest problem for India, regardless of the new development in the Middle East, is the fact that we stopped importing oil from Iran, which limited the money available in the rupee account. We have been told that the money there will be enough for our exports for the next three or four months. What happens next is a theme,” says Ajay Sahai, CEO and CEO of the Federation of Indian Export Organizations (FIEO). India continues to work on the U.S. renouncement of continued oil trade with Iran. However, future gross purchase contracts will not be entered into until after December, as New Delhi is expected to conduct a new round of talks with US officials, leading sources told FE Online. India could revive a rupee payment with Tehran to rescue exporters who may be exposed to “the heat of U.S. sanctions,” according to information reported by the Financial Express. As part of this settlement, Indian oil refineries deposit funds with banks designated to import oil from Iran. These rupee funds are then used to eliminate the fees of traders who export from India to Iran. As a result of U.S.
sanctions, India cannot engage in dollar-denominated trade with Iran. That is why a rupee exchange mechanism has been put in place, which is an exchange agreement between the two countries in order to trade without using international currencies such as the dollar. Amid the bitter struggle between Iran and the United States, Indian exporters to Iran are worried. Indian exporters may find that their payments will be frozen over the next three to four months. They are concerned about the bilateral trade mechanism in The Ruupian that the two countries put in place a year ago, given that the Rupfupe kittens with Iran, which result in payments to Indian exporters, are quickly exhausted. If no alternative mechanism is put in place, the rupee-rial trade could stop in a few months. “Under the current circumstances, it would be interesting for Iran and India to take over the