ID :
198233
Sat, 07/30/2011 - 15:14
Auther :
Shortlink :
https://www.oananews.org//node/198233
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Indian Oil Refineries Open Accounts in Turkey to Pay Iran
TEHRAN (FNA)- Indian refineries, seeking to end an impasse over payments for Iranian crude oil, have opened accounts with state-owned Union Bank of India to route money through a lender in Turkey, two people with direct knowledge of the matter said.
The step is an experimental option, the people said, declining to be identified because they aren't authorized to speak to the media. Mangalore Refinery and Petrochemicals Ltd, Essar Oil Ltd and Hindustan Petroleum Corp are among the refiners that opened the accounts, one of the people said. They didn't reveal the name of the Turkish bank.
Indian and Iranian officials are discussing whether the payment route through Turkey can be made permanent and may reach an agreement by today or tomorrow, the people said.
An accord may end a gridlock that has threatened $9.5 billion in annual oil trade between the two countries. Iran is under international sanctions over its nuclear program and punitive measures include curbs on financial transactions with the Persian Gulf country, which made it difficult to find banks willing to transfer oil payments.
S.C. Kalia, executive director at Mumbai-based Union Bank, didn't return three calls made to his office seeking comment. UK Basu, managing director of Mangalore Refinery, didn't answer two calls made to his mobile phone.
S. Roy Choudhury, chairman of Hindustan Petroleum, didn't return two calls made to his office. Manish Kedia, a spokesman for Essar, declined to comment on the company's plans to pay for the Iranian oil.
India is considering paying Iran for crude supplies through a bank in Turkey and is keeping other options open, oil minister S. Jaipal Reddy said in New Delhi yesterday.
The step is an experimental option, the people said, declining to be identified because they aren't authorized to speak to the media. Mangalore Refinery and Petrochemicals Ltd, Essar Oil Ltd and Hindustan Petroleum Corp are among the refiners that opened the accounts, one of the people said. They didn't reveal the name of the Turkish bank.
Indian and Iranian officials are discussing whether the payment route through Turkey can be made permanent and may reach an agreement by today or tomorrow, the people said.
An accord may end a gridlock that has threatened $9.5 billion in annual oil trade between the two countries. Iran is under international sanctions over its nuclear program and punitive measures include curbs on financial transactions with the Persian Gulf country, which made it difficult to find banks willing to transfer oil payments.
S.C. Kalia, executive director at Mumbai-based Union Bank, didn't return three calls made to his office seeking comment. UK Basu, managing director of Mangalore Refinery, didn't answer two calls made to his mobile phone.
S. Roy Choudhury, chairman of Hindustan Petroleum, didn't return two calls made to his office. Manish Kedia, a spokesman for Essar, declined to comment on the company's plans to pay for the Iranian oil.
India is considering paying Iran for crude supplies through a bank in Turkey and is keeping other options open, oil minister S. Jaipal Reddy said in New Delhi yesterday.
