India says it expects a major jump in its exports to Iran in light of a sanctions waiver mechanism provided by the United States to maintain purchases of oil from the Islamic Republic.
India expects major jump in Iran exports
6 Nov 2018 - 9:18
India says it expects a major jump in its exports to Iran in light of a sanctions waiver mechanism provided by the United States to maintain purchases of oil from the Islamic Republic.
Ganesh Kumar Gupta, the president of the Federation of Indian Export Organizations (FIEO), was quoted by media as saying that the trade terms envisaged in Iran sanctions waiver mechanism would provide assurances for increased exports to Iran.
This, Gupta added, could translate into a rise of 20-25 percent under the new bilateral trade regime between the two countries.
"If there is bilateral trade and in exchange of crude, the Iranian government makes payment in Indian rupees to Indian exporters then there can be a jump of 20-25% in exports to Iran," he said.
On Friday, the US said countries that had received waivers to continue purchases of oil from Iran – including India – would have to set up escrow accounts from which payments to Tehran would be settled.
Senior US official Brian Hook was quoted by media as saying that settlements with Iran would be carried out through “credits” and not hard currency, and that the same credits could be used to settle financial matters over exports of goods to Iran.
Story Code: 374881