Iran is ready to meet India’s energy security needs, the country’s ambassador to India said, adding that talks are on between world powers and Iran on lifting sanctions against the OPEC member.
Indian facilitation body MVIRDC World Trade Center quoted Ali Chegeni as saying, “The rupee-rial trading mechanism can help companies in both countries deal directly with each other and avoid third-party arbitration costs.”
Iran used to be India’s second largest oil supplier, but New Delhi had to halt imports from Tehran after former US President Donald Trump withdrew from the nuclear deal with Iran and reimposed sanctions on its oil exports. India, the world’s third largest oil importer and consumer, meets more than 80% of its crude oil needs with imports.
The two countries have created a barter mechanism to settle trade where Indian refiners were paying a local bank for Iranian oil in rupees and the money was used by Tehran to pay for imports from India.
“If the two countries initiate a rupee-rial trading mechanism, the bilateral trade could increase to $30,” Chegeni said.
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