India Pays Part of What it Owes Iran for Crude

Posted August 8th, 2011 at 11:10 am (UTC-5)
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Iran has received $1.4 billion from India in the past 10 days, a portion of overdue payments for Iranian oil.

Iran’s central bank says India owes it nearly $5 billion for oil deliveries in recent months. India suspended payments for Iranian crude since December, in response to U.S. sanctions on banks doing business with Iran.

India said last month that it intends to pay Iran for the oil but did not elaborate on the methods the government would use to route payments to Iran.

It is not clear when the rest of the payments will be made.

Washington has imposed financial sanctions on Iran for pursuing nuclear activities that Western powers suspect are aimed at developing nuclear weapons, a charge Tehran denies.

Energy-hungry India imports more than 400,000 barrels of crude oil a day from Iran, roughly 12 percent of the South Asian country’s oil imports.