Indian oil refiners have paid about $750 million in the past two weeks and aim to clear in the next three months the entire $6.6 billion owed to Iran for crude purchased during the sanction years, an oil ministry official has said.
Following the lifting of most of the sanctions on Iran, Indian refiners have begun paying Iran for the past purchases that couldn’t be paid due to unavailability of the banking channel. Now the refiners are using Euro to make the payment and routing it through Turkey’s Halkbank. State refiners Mangalore Refinery and Petrochemicals (MRPL) and Indian Oil Corporation have paid $500 million and $250 million respectively to Iran. About 45% of the $6.6 billion dues are owed by MRPL while 43% are owed by Essar Oil.