New Delhi: The Centre has clarified that Indian refiners settling payments for Iranian oil in Chinese yuan are operating within established regulations, dismissing concerns over the arrangement. The response comes after reports indicated that transactions for limited Iranian crude purchases were being routed through ICICI Bank using the yuan.
Officials emphasised that meeting domestic energy requirements remains the top priority, and oil marketing companies are adhering to all applicable rules while conducting such transactions. The development follows temporary sanctions relief granted by the United States, allowing countries to purchase Iranian and Russian oil already in transit to stabilise global markets affected by geopolitical tensions involving Iran.
Indian refiners have resumed limited imports of Iranian crude under this waiver, including a notable purchase by Indian Oil Corporation, which acquired a significant cargo after several years. Multiple vessels carrying Iranian oil have also been permitted to dock at Indian ports, reflecting a cautious but active approach to securing supply.
Payment challenges, often a hurdle in such transactions due to sanctions, appear to have been addressed through the use of alternative currency channels. The use of the Chinese yuan has enabled smoother settlement processes, even as some global buyers remain hesitant.
The waiver for Iranian oil is set to expire soon, and there is uncertainty over whether it will be extended. In contrast, relief for Russian oil transactions has already been prolonged, adding another layer of complexity to global energy trade.
The broader backdrop includes ongoing disruptions in the Strait of Hormuz, a critical route for global oil shipments. Despite these challenges, India has managed to maintain relatively stable energy supplies compared to several other regions.
The government’s stance underscores a pragmatic approach focused on ensuring uninterrupted fuel availability, even as international dynamics continue to evolve.
