India refiners brace to settle Iran debt

India

NEW DELHI, July 1, 2015 – India has asked domestic refiners to buy euros and dollars to make ready for $6.5 billion in debt payments to Iran if sanctions are lifted.

The move is intended to forestall downward pressure on the rupee if negotiations on a nuclear accord between Western countries and Iran succeed.

Indian refiners lost their channel for payments to Iran when Turkey’s Halkbank ceded to US and EU sanctions pressure to end flows of cash to the country in 2013.

India’s oil ministry said in a June 11 letter to five refinery operators that if a deal is reached on its nuclear programme, Iran would likely call in the billions in debts.

For more news and features on India, click here.

Read our latest insights on:

• India

Previous

Vitol, Helios buy into Oando downstream

Next

Uganda shortlists bid round competitors