NEW DELHI (Reuters) – India`s finance ministry has exempted rupee payments to the National Iranian Oil Co (NIOC) for crude oil imports from a strong withholding tax, according to a government order verified by Reuters. Since May 2019, India has stopped buying Iranian oil, which accounts for about 90 percent of its imports from the Islamic nation, to circumvent U.S. restrictions, the rupee rials payment mechanism for exporters has collapsed. Indian companies have held payments for exports to Iran from oil payments (for Tehran) to Rupiensalden, UCO Bank, following sanctions imposed on Iran by the Obama administration. Later in 2019, even idbi Bank was allowed to have this facility. Two exporters informed the UAE that the state-owned banks had informally informed them that the balance of these accounts would not remain in these accounts until April 2020. According to a BBC World Service Poll, conducted at the end of 2005, 71% of Iranians viewed India`s influence positively, 21% viewed it negatively, which is the best country in the world. [8] As Iran is well linked to India and Pakistan, Iran has proposed to mediate between the two sides. [9] The Iranian imperial government and the Indian government, recalling the provisions of the trade and maritime treaty between the Iranian imperial government and the Government of India, signed on 15 December 1954, including Articles 1, 9, 10, 11 and 13 contained in the annex attached to this agreement, in THE PURPOSE of strengthening and promoting trade relations between the two countries.
, HAVE as follows agreed the rupees with Iran began to shrink, shortly after India completely stopped imports of crude oil from the country about six months ago. Under the agreement, India would have to import oil from Iran through a rupee-based payment mechanism, which provides for 50% of payments for oil imports to handle payments to exporters of other products from India. India and Iran have friendly relations in many areas, although India does not welcome the 1979 revolution. There are important trade relationships, including crude oil imports to India and diesel exports to Iran. Iran has often opposed Pakistan`s attempts to draft anti-India resolutions with international organizations such as the OIC and the Commission on Human Rights. [10] India welcomed Iran`s accession to the SAARC regional organization as an observer state. [Citation required] As part of the India-Iran trade agreement, local oil refineries imported crude oil from the Middle East and paid the rupee count at Uco and IDBI. That was until crude oil was on the list exempt from U.S. sanctions.
These banks, in turn, use this fund to pay payments to exporters. Trade between India and Iran fell by 79.4% in the first eight months of the current budget to $3.5 billion, compared with $17 billion in the same period last year, after the expiration of the abandonment of oil sanctions by the United States to India. The north-south corridor is the sea, rail and road route for freight transport between India, Russia, Iran, Europe, the Caucasus and Central Asia.
