Sunday, January 8, 2012

India to Pay for Iran Crude with ‘Non-Strategic’ Commodities

India plans to pay for the imported Iranian crude in rupee credit line, to be used by Iran to purchase ‘non-strategic’ Indian commodities. Under the proposal, the National Iranian Oil Company (NIOC) will open a rupee account with Indian banks, and can use the money to purchase non-strategic commodities yet to be identified. The Press Trust of India reported today that a team of Indian officials would visit Tehran on 16 January to finalize the payment issue between the two countries.

India currently imports 370,000 barrels per day of crude oil from Iran, worth more than 1 billion dollars a month, using Turkey as a conduit to pay for it. This arrangement will come to an end shortly when the new US sanctions against foreign banks transferring funds through the Central Bank of Iran goes into effect.


Anonymous said...

Excellent, now Iran can buy:
SNAKE oil, Curry, naan, papadam, etc.. for the oil exported to India.
Na sharghi , na gharbi ... papadam, papadam !

Anonymous said...

Meaning ship loads of Basmati rice !

Anonymous said...

Anon 6:17 PM


Anonymous said...

Iran GIVES its oil away to India and China.
Iran receives Indian and Chinese junk into Iranian market to sell for worthless Iranian rials.
Who benefits in the end?
India China the IRGC mafia and the blood sucking mullahs.
Islamic regime 1
Iranian people 0

Anonymous said...

Iranian military, as might says, is mighty, mighty mighty....with secret weapons.....such as big Chinese refrigerators with outboard motors that will come swiftly through the waters of the Gulf to completely destroy the US fleet

Iran is SUPERPOWER!!!!!!

like mighty mouse

Steve said...

As usual, India will have to pay for Iranian oil in cash, as India cannot afford running out of fuel.
There are myriads of ways to fulfill this task. Circumventing the sanctions with clever financial tricks doesn't pose an insurmountable problem.

Anonymous said...

as usual a lot of stupid and arrogant iranian American, posting a lot of nonsense .

you are making a g mistake if you
underestimate India. a country with 7-8% groethrate, with Nuke, Areonatic and a lot of heavy industry. The Richest British man is Indian origin.

as I last Job was moved to bangalore, I stopped to laugh about Sanke oil and curry nan.

just look at $-Yuan Exchange- Rate
if you bought ars ago Chinesae , you would be a very rich mannto day

Anonymous said...

Anon. Jan 9th 3:47 pm

Yes India has all the things you,ve mentioned. No comments here was intended to offend India as a country or Indian people, but to clarify the simple fact that Iran will not get anything (Non Strategical products) worthwile her oil. It will be Oil snake, papadam and curry and nan and etc .....

Anonymous said...

Anon 3:47 PM

It makes no difference what India has it's what Iran isn't getting and that's cold hard cash dollars for the oil.
It doesn't matter if China's currency is strong or not because Iran will be bartering oil for junk and that junk will have to be sold off in Iranian markets to retrieve some of the oil given to those counties.
Iran has no spending power left and because of that Iran is forced to except the terms laid out by China India and Turkey.
Iran needs Chinese and Russian Veto in the UN against the West because of their nuclear program that's why Iran is giving away its oil to China and excepted only 13 per cent of the Caspian sea instead of 50 per cent as before revolution.
A truly Qajar policy back from the dead thought long buried.

Anonymous said...

Why would Iran accept such a deal?

Anonymous said...

This is just a proposal , Iran has rejected such previous Indian proposals.

Anonymous said...

According to Bloomberg Russia could possibly replace Turkey as the middle man for Indian payments to Iran :

Anonymous said...

It didn't take long to defeat those sanctions. Wow what a dumb move by the USA.

Anonymous said...

"Excellent, now Iran can buy:
SNAKE oil, Curry, naan, papadam, etc.. for the oil exported to India."

Are you really this deluded about the economy of India? You can buy anything in the world from India.

Anonymous said...

Anon. Jan 9th 10:17 pm

No I am not delusional. A "bache basiji" like you obviously fails to grasp the term "non strategical products" . I suggest you look up the word. Snake oil, papadam, etc.. is what Iran and the Mullahs will get for the Iranian oil in this case.

Anonymous said...

"It didn't take long to defeat those sanctions."

Go and live in Iran and find out how the Iranian people are panic dumping their worthless rials for US dollars.
The country is in agony and you sit on your ass and type dross on the internet.

Anonymous said...

OK guys India produces a lot of things which includes advanced weapons but lets get something straight here.
India won't be giving any advanced weapons to Iran or helping out in the nuclear field.
India will dump their low end products in Iranian markets in return for (give away) Iranian crude oil while destroying Iranian domestic producers and laying off tens of thousands of workers.
Now put China and Turkey in the scenario and you can see the destruction it has caused with the Iranian domestic producers.
The stupidity and greed of the Islamic regime knows no bounds.

Anonymous said...

Why would Iran want Indian weapons? Iran's weapons industry is probably on par with India's.

Anonymous said...

India’s refiners are diversifying their oil supplies away from Iran towards partners in the Gulf and Latin America, as international sanctions aimed at curbing Tehran’s nuclear programme intensify


India seeks oil alternatives to Iran
By James Lamont in New Delhi

India’s refiners are diversifying their oil supplies away from Iran towards partners in the Gulf and Latin America, as international sanctions aimed at curbing Tehran’s nuclear programme intensify.

Hindustan Petroleum Corporation, a state-owned refiner, on Tuesday said it would double imports of crude oil from Saudi Arabia. Over the past two years, Reliance Industries, which operates the world’s biggest refinery, has turned to oil imports from Latin America in 2010, shunning an annual import deal with Iran as payment mechanisms hit difficulties. Other state-owned oil companies, including Indian Oil Corporation and Bharat Petroleum, are also expanding supplies from Saudi Arabia.

The US has increased pressure on countries, including India, Japan and South Korea, to shift away from buying Iranian crude. Washington last month introduced sanctions that would punish financial institutions that deal with Iran’s central bank through which most oil payments are cleared.
India is the world’s second largest importer of Iranian crude after China. It imports 400,000 barrels a day of crude from Iran, worth about $12bn a year. In the face of the US pressure, Japan and South Korea are also looking for new oil suppliers.

Tim Geithner, US Treasury secretary, arrived in Beijing on Tuesday and is expected to press China to move away from Iranian oil when he meets government officials.

Jaipal Reddy, India’s oil minister, said that India was facing difficulties from the international sanctions levelled against Iran. While assuring that supply disruptions would not hit Indian consumers, he said India had “lined up other sources of supply”.

Tightening US and EU sanctions have made it more difficult over the past two years for Indian companies to pay their fuel bills to Tehran’s central bank.

Payments previously routed through the Asian Clearing Union and EIH, a German bank, were last year transferred to Halk Bankasi in Turkey in order to circumvent international sanctions.

Now the Turkish route is also under threat, prompting India to consider alternative mechanisms for payments through Russia, rupee payments and barter arrangements.

Western diplomats said they were struck over the past year by the rising level of engagement between India and its partners in the Gulf, particularly in enlarged energy co-operation.

Earlier this month, India agreed to open its oil sector to Saudi investments in oil and gas, petrochemical plants and refineries to “elevate” the current buyer-seller relationship.

Ranjan Mathai, India’s foreign secretary, has insisted that Iran is “crucial” to his country’s energy security – a position, he told the Financial Times, that is understood by Washington.

“A very large amount of India’s oil imports do emanate from Iran. In the current energy market it is not easy to consider that India can … manage without Iranian oil,” he said last month.

Copyright The Financial Times Limited 2012.


Your living god is causing long term damage to your economy.....years from now the Iranian people will still be paying the price.

Anonymous said...

Anon 10:39 AM

India's arms industry is more advanced than Iran's.Look at their nuclear powered submarine that they have built.Iran is only producing mini subs and still not able to build the 1200 ton plus medium range submarine.India produces fighter planes yet Iran claims to produce copies of F5s and claim it is similar to F18 Hornet yet not one photographic evidence exists of any production of this over inflated claim.Iran claims to produce Jamaran class ship yet the one they have shown is repainted ship that Iran purchased from Britain over 35 years ago.There is not one single photographic evidence showing this ship being built because the regime would have shown it if they had built it from scratch.The anti ship missiles that Iran claims it manufactures are assembled parts from china and the regime covers their purchase from china and claims they fully produce it in Iran basically a pack of lies made by expert liars.
This regime is a regime of liars and swindlers.They hood wick the Iranian people into believing their stories.

Anonymous said...

January 10, 2:06 PM

When will Iran bringout its new aircraft carrier for the world?

Its no secret that Iran is building a larger more sophisticated aircraft carrier than the US has ever built and also this ship will have the newest russian and chinese stealth fighters onboard also it will be very fast, it is rumored to be able to cruise at 65knots!

The ameikans dare not try to attack us!

Anonymous said...

Anon 2:06 PM

That's what I have been saying all along.

Anonymous said...

Anon 3:58 PM

I thought you were joking.
But now I believe you are serious.Can I have the same stuff that you are taking??

Anonymous said...

Anon. Jan 10 th 3:58 pm

Yes Iran is also building a space ship that will reach warp 10 and is already planning to send a few "talabe naut" from Hozeye feyziye to the nearest galaxy to spread the msg of Velayate faghih and establish the first Islamic republic in outer space !

Anonymous said...

Anon January 10, 2012 1:43 PM,

You may be correct about your assumtions of Iran hurting itself further in the long term, here is another India/Iran/Oil article.

India’s government has told refiners to reduce Iranian oil imports and find alternatives as New Delhi may not seek a waiver that would protect buyers of Tehran’s oil from a fresh round of U.S. sanctions, two industry sources said on Wednesday.

India, Iran’s second largest oil buyer after China, is already struggling to pay for the crude due to existing sanctions, and fresh U.S. measures aimed at isolating Iran over its nuclear program will make payment even harder.

The South Asian country buys from Iran about 12 percent of its oil needs, or 350,000-400,000 barrels per day (bpd) and worth $12 billion annually.

Indian oil firms were told by officials at a meeting on Monday that the government was not planning to seek an exemption from the U.S. sanctions, and were advised to reduce dependence on Iran and be ready with alternative supply sources.

“The companies have been told to reduce Iranian supplies and the government is not planning to seek a waiver,” said one of the industry sources, who declined to be identified due to the sensitive nature of the matter.

The second source said the government appeared to believe that a waiver from the sanctions would provide only temporary relief as the exemption would only be for 120 days.

India’s National Security Adviser Shivshankar Menon, who officials have said is driving his country’s negotiations on Iran oil, met U.S. Charge d’Affaires to India Peter Burleigh last week.

“India is indicating it will not seek a waiver,” said a source at a foreign embassy in New Delhi with knowledge of the matter.

“What is the point in short-term solutions? The waiver is not forever. Perhaps the Indian government realizes it is better to reduce (Iranian imports) or replace if possible.”

A senior Indian government source with direct knowledge of the matter said “no decision has yet been taken” on seeking exemptions under the U.S. sanctions.

India is currently paying for Iran oil imports through Turkey’s Halkbank, a mechanism that is expected to succumb to a new law U.S. President Barack Obama signed on New Year’s Eve, which if implemented fully would prevent most refineries from paying for Iranian crude.

Halkbank has already refused to open an account for state-run Bharat Petroleum Corp for oil from Iran. The U.S. law would strip any institution dealing with Iran's central bank from access to the U.S. financial system.

However, the law allows Obama to issue waivers to firms in countries that significantly reduce dealings with Iran, or at any time when it is either in the U.S. national interest or necessary for energy market stability.

An Indian delegation will visit Tehran from Jan. 16-21 to explore alternative routes of payment to ensure supplies without breaching sanctions, a government source said.

Indian refiners have gradually started raising supplies from other sources such as Saudi Arabia, Iraq and the United Arab Emirates.
Hindustan Petroleum recently doubled the size of its annual crude purchase deal with Saudi Arabia. HPCL is the second Indian firm after Mangalore Refinery and Petrochemicals Ltd to raise supplies from the Kingdom, the world’s biggest oil producer.

Anonymous said...

Hilarious about the iranian aircraft carrier chockablock with the latest Russian and Chinese aircraft.

where does this joker think it's being built? in some secret underground site buried far beneath the mountains?

it's very nice that Deputy Navy Commander Captain Mansour Maqsoudlou has announced the country’s plan to design and manufacture aircraft carriers.... but beginning to draw up plans for something such as an aircraft carrier means that if they really, really hurry it'll be 8 years before it's ready .

Anonymous said...

Didn't they say they were going to build a 1000 ton plus submarine about 4 years ago?
As for the aircraft carrier forget it!
The closest to an aircraft carrier that might be built will possibly be an Helicopter air assault ship which is smaller and cheaper but what possible use for Iran will it be is another question.
For a small navy like Iran's no matter what regime in power should be submarines as main line of defense at sea.Money is better spent on 2 to 3 dozen submarines than a large fleet of surface ships.Ideally nuclear powered attack subs if at all possible.
But the way this regime operates it might take another twenty five years before they even lay the keel of the submarine let alone the aircraft carrier.That's if they are around by then,which I highly doubt.