Iran Halts Oil Sales to India in Exchange for Rupees or Goods

On April 10, Iran's Oil Minister Bijan Namdar Zangeneh announced that the country's oil sales to India, which had been conducted in exchange for rupees or goods due to nuclear sanctions, have been halted, and from now on, New Delhi will pay in euros. Zangeneh made this statement during the visit of his Indian counterpart, following a joint meeting in Tehran with Iranian and Indian economic delegations, and he also announced the reopening of 'three channels' for receiving oil debts. India has typically owed Iran oil debts, and previous Iranian officials have stated that this country 'will always have a balance in India.' Extensive oil and banking sanctions, primarily due to Iran's nuclear program, had led New Delhi to settle its oil purchases with rupees, gold, or goods. According to the Islamic Republic's official news agency, IRNA, Zangeneh stated that India currently owes Iran six billion dollars (5.2 billion euros), which 'belongs to the Central Bank and is being pursued.' Iran exports over 350,000 barrels of oil per day to India. According to the energy news agency 'Shana,' Zangeneh expressed hope that exports would increase. The Indian newspaper 'Economic Times' quoted industrial officials from that country stating that Indian refineries are striving to increase oil imports to 'at least 400,000' barrels per day following the end of nuclear sanctions. Zangeneh also mentioned that no agreement has yet been reached between the two sides for 'constructing a gas pipeline through the sea.' Previously, on the eve of the Indian delegation's visit to Iran, the Iranian oil minister had hinted that New Delhi was not interested in reviving the peace pipeline project for transferring Iranian gas through Pakistan to India. Zangeneh stated that there are currently 'two options for exporting via pipeline and LNG to India that need to be examined.' The Iranian Ministry of Oil has stated that it is working to increase its gas customers, prioritizing neighboring countries. In the meeting on Saturday between the oil ministers of Iran and India, agreements were made for the development of the Farzad gas field (in the Farsi block, west of the North Pars field) or investment in the petrochemical industry. The extensive nuclear sanctions on Iran were lifted following an agreement between Tehran and six world powers in exchange for limitations imposed on Iran's nuclear program. However, Iran remains under other sanctions from countries like the United States, related to issues such as 'supporting terrorism,' ballistic programs, or human rights violations, and those sanctions continue. This situation remains a significant obstacle in Iran's trade with other countries using the dollar, and Tehran claims it uses euros for this purpose.