India has paid 1.5 billion euros ($2.08 billion) to clear overdue payments for oil imports from Iran [Reuters, 3 March]. Last December, the Reserve Bank of India (RBI) stopped using the Asian Clearing Union to settle India’s payment to Iran for their possible non-adherence to US sanctions against the country. The RBI did not disclose the new payment mechanism. It is believed, however, that the payments were settled in euros through the Bundesbank, the German central bank.
Iran is India's second-biggest oil supplier after Saudi Arabia. India imported 424,000 barrels per day (bpd) of oil from Iran last year, worth $12 billion.