Iran’s Central Bank to be paid in euro for Oil delivered to Refineries in India
nsnbc : An oil executive at the Central Bank of Iran (CBI) announced that the bank would only receive payments from refineries in India in euro. Seyed Mohsen Ghamsari, the Executive Director for International Affairs at the National Iranian Oil Company (NIOC) dismissed comments made by Indian officials, according to which Tehran was “banning” crude oil sales to refineries in India.
Ghamsari stressed that the Central Bank of Iran (CBI) holds responsibility for the collection of receivables from the sale of Iranian crude oil to refineries, including refineries in India. He added that the CBI decided to stop the sale of Iran’s oil to India in rupee and said that from now on, payments will only be made in euro. The NIOC director also stressed that the NOIC is not in charge of defining the currency that is accepted by Tehran.
Ghamsari also noted that “during sanction years, the NIOC would undertake the cost of the insurance and transport of oil to India under CIF contracts while recently sealed deals have been in the form of Free On Board (FOB) which indicates that the buyers are required to pay the shipping costs. … The volume of Iran’s oil sales and exports to certain countries, including South Korea and India, has experienced a significant growth in the post-sanction era”.
The NOIC Executive Director stressed that the amount of oil sales to refineries in India has increased by approximately 20 percent in the post-JCPOA period as compared to the years when Iran was slammed with sanctions. Following the removal of most of these sanctions Iran’s oil exports lead to a total sales volume of some 2.5 million barrels per day. Iran has canceled some selling opportunities that were available to refineries in India during the sanctions regime.