Wednesday, February 8th 12:39 PM IST

India,Iran reach oil payment deal without gold

# Iran gold  # sanctions  # gold holdings  # EU  

The deal wiped out any doubts about gold payment though India denied it when the rumour spreads last month.

NEW DELHI(BullionStreet) : Putting aside all speculations, India and Iran have reached oil payment deal without gold.

According to reports India will make 45 percent of the payment for its oil from Iran in local currency the rupee, which Tehran will use to pay for imports from Iindia.

Iran's oil sales to India have been fraught with payment problems in the past 13 months after a clearing mechanism was scrapped and Indian refiners have sought alternative supplies.

The deal was an achievement for India as sanctions against Iran are proving difficult to enforce because of it's reliance on Iranian crude.

India buys around $12 billion a year's worth of Iranian crude, or about 12 per cent of its total requirements.

Iranian Ambassador Seyed Nehdi Babizedeh confirmed Iran had opened accounts in Indian banks to process the payments in Indian currency.

The deal wiped out any doubts about gold payment though India denied it when the rumour spreads last month.

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