Iran’s Oil Ministry announced today that the oil payments impasse with India has been resolved. The Indians will process the oil payment outside the Asia Clearing Union, as demanded by them, but they will pay for oil transactions in currencies other than dollar or euro to ease Iran's concerns over blockade of their funds by the US or EU. The two sides met in Mumbai today to settle the dispute. India’s crude purchase from Iran totals $12 billion a year.
UPDATE: Reuters is quoting a senior Indian official as saying that the oil payment dispute with Iran was not resolved during the Mumbai meeting, with more discussions to follow.
"We had technical level talks. There will be further rounds of discussion until a solution is reached between the policy makers of the two countries," a senior Indian official present at the meeting said [Reuters, 1 January].