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

Markets

REUTERS SHOWCASE

Banned From Bidding

Banned From Bidding

India bans Finmeccanica from bidding for contracts amid graft case.  Full Article 

Sugar Talk

Sugar Talk

Sugar export rebound at risk from rising domestic prices.  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

New Ordeal

New Ordeal

After disasters, stricken Malaysia Airlines staff brace for job cuts.  Full Article 

Deal Talk

Deal Talk

Kleiner to invest in messaging startup Snapchat at near-$10 bln valuation - report.  Full Article 

Expert Zone

Expert Zone

Column - Why inflation is so persistent.  Full Article 

Reuters India Mobile

Reuters India Mobile

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