Japan banks unlikely to settle India-Iran oil payments

NEW DELHI Tue Jun 7, 2011 4:35pm IST

Related Topics

NEW DELHI (Reuters) - Japan is unlikely to allow India to use Japanese banks to provide a clearing house mechanism for India to pay for Iranian oil imports, Japan's deputy foreign minister told Reuters on Tuesday.

Iran has offered India various options to end an impasse on payments, including a choice of currencies and paying on a cargo-by-cargo basis, after India's central bank scrapped a long-standing payment system in December under pressure from the United States.

"I do not think so," Shinichi Nishimiya, deputy foreign minister of Japan said when asked whether Japan would allow its banks to process the payments.

He said Japan would follow global sanctions against Iran, which stands accused by western powers of pursuing a nuclear weapons programme. Iran denies the charge.

Iran is India's second-biggest supplier for crude after Saudi Arabia, exporting about 400,000 barrels per day or 12 percent of the fast-growing Asian country's needs in trade worth some $12 billion a year.

India's outstanding debts to Iran for oil stood at about $2 billion at the end of May.

(Reporting by Henry Foy; Editing by Krittivas Mukherjee)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage