Iran has agreed to take payments for oil it sells to India entirely in rupees to dodge the U.S. and western sanctions.
India has been, since July 2011, paying in euros to clear 55% of its purchases of Iranian oil through Ankara- based Halkbank.
The remaining 45% due amount was remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank, said reports.
Iran apparently explored taking 55 per cent payments in Russian Rouble and other currencies but the payment routes could not be finalized due sanctions against the Persian Gulf nation.
Sources said Iran has now agreed to take all of their payment in Indian rupees.
India had in 2012-13 imported 13.14 million tonnes of crude oil from Iran.
Iran can use the revenue accumulated in Uco Bank account to purchase “permissible” services and goods, such as food, medicine and basic medical equipment.Â
