Mumbai, India – Web Desk: India has reportedly shifted its payment mechanism for Iranian oil imports, opting to settle transactions in Chinese yuan instead of the US dollar, according to a report by Reuters.
The move comes after the United States granted a temporary 30-day waiver last month, allowing limited purchases of Russian and Iranian oil to stabilize global energy markets amid ongoing geopolitical tensions and rising crude prices.
Citing four informed sources, Reuters reported that Indian oil refiners utilized the waiver period to procure Iranian crude, marking a significant development in regional energy trade dynamics. Payments for these transactions were processed through ICICI Bank in Mumbai, with funds transferred in yuan via its Shanghai branch to Iranian sellers.
India’s state-run Indian Oil Corporation is said to have purchased approximately 2 million barrels of Iranian crude worth nearly $200 million earlier this month. This reportedly marks India’s first official Iranian oil purchase in nearly seven years.
In addition, vessels carrying Iranian crude for private-sector Reliance refinery were also permitted to dock at Indian ports, signaling a cautious easing of restrictions during the waiver period.
Due to longstanding US sanctions on Iran, many countries have faced challenges in processing payments for Iranian oil. The adoption of yuan-based transactions could help bypass some of these financial barriers, potentially reshaping global oil trade practices.
However, the identities of the Iranian sellers involved in these transactions remain undisclosed.
