India to pay for Iranian oil in gold, China likely to follow
In a bid to circumvent Western sanctions, India has agreed to purchase Iranian oil using gold instead of dollars, and China is likely to follow suit. Between the two of them, India and China account for 40% of Iranian oil sales. The EU, which agreed on Monday to gradually place an embargo on Iranian oil, accounts for 20% of Iranian oil sales.Let's go to the videotape.
DEBKA adds (Hat Tip: Will):
Iran's second largest customer after China, India purchases around $12 billion a year's worth of Iranian crude, or about 12 percent of its consumption. Delhi is to execute its transactions, according to our sources, through two state-owned banks: the Calcutta-based UCO Bank, whose board of directors is made up of Indian government and Reserve Bank of India representatives; and Halk Bankasi (Peoples Bank), Turkey's seventh largest bank which is owned by the government.What could go wrong?
An Indian delegation visited Tehran last week to discuss payment options in view of the new sanctions. The two sides were reported to have agreed that payment for the oil purchased would be partly in yen and partly in rupees. The switch to gold was kept dark.
Labels: China, India sanctions Iran, Iran sanctions regime, Iranian nuclear threat
posted by Carl in Jerusalem @ 4:07 PM
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