India pays second tranche of $700 mln to Iran!

Indian refiners have paid a second installment of $700 million to Iran to partly settle pending oil dues, two industry sources said, after a July deal that set out a roadmap for the lifting of sanctions over Tehran’s nuclear activities.

India last month cleared a similar amount to Iran, the first release of such funds since Iran in August asked India to release $1.4 billion in oil dues in two equal installments.

Essar Oil on Tuesday paid about $338 million, followed by about $299 million from Mangalore Refinery and Petrochemicals Ltd, the sources said, adding Indian Oil Corp paid about $60 million and Hindustan Petroleum Corp about $3 million.

Indian refiners owed about $6 billion to Iran as of end-September, the sources said. Essar owed about $2.9 billion, MRPL about $2.5 billion, and IOC owes $500 million. HPCL-Mittal Energy Ltd owed $97 million and HPCL had to pay $26 million.
Indian refiners have been depositing 45 percent of their oil payments to Iran in rupees with UCO Bank since 2012. Tehran uses the funds, currently more than 170 billion rupees ($2.6 billion), for importing non-sanctioned goods from New Delhi.

Refiners have been holding the remainder after a route to pay for oil through Turkey’s Halkbank was stopped in 2013 under pressure from sanctions, although payment of some of those funds was allowed after an initial temporary deal.

Tehran is India’s seventh-biggest supplier of oil, down from the No. 2 spot before sanctions. Reuters