(ET)
Indian refiners will pay for oil from Iran in rupee, using UCO Bank and IDBI Bank, from November 4 when petroleum-related sanctions against the Islamic Republic take effect, according to people familiar with the matter. India has also offered to cut its oil purchase from Iran significantly to secure a waiver from the US to continue its imports. Without a waiver, an oil trade or financial transaction with Iran risks cutting India off the US financial system. Iranian oil exports have dropped ahead of sanctions as several countries have begun to curtail their purchase from the Middle-East producer.
Indian Oil Corp, Mangalore Refinery and Petrochemicals (MRPL) and Nayara Energy (formerly Essar Oil are some of the heaviest Indian importers of Iranian oil that comes with cheaper freight and a longer 60-day cred .. Without a waiver, an oil trade or financial transaction with Iran risks cutting India off the US financial system. Iranian oil exports have dropped ahead of sanctions as several countries have begun to curtail their purchase from the Middle-East producer.
