Indian refiners using yuan to settle payments for Iranian oil
What's the story
Indian refiners are reportedly using Chinese yuan to settle payments for Iranian oil. The transactions are being processed through ICICI Bank, according to a Reuters report. The purchases come after recent waivers from Washington, allowing countries to buy Russian and Iranian oil at sea amid the ongoing conflict between the United States and Israel with Iran.
Major acquisition
IOC makes 1st Iranian crude purchase in 7 years
The Indian Oil Corporation (IOC) has made its first Iranian crude purchase in seven years. The state-run company bought two million barrels of oil from the very large crude carrier Jaya for $200 million. Four other vessels carrying Iranian oil have also been allowed to berth in India, despite difficulties in arranging payments that have deterred some potential buyers.
Official response
Indian government defends transactions
The Indian government has defended these transactions, saying such transactions are "entirely within the rules." Sujata Sharma, Joint Secretary of the Ministry of Petroleum and Natural Gas, said that meeting domestic needs is a priority. She added that Oil Marketing Companies (OMCs) are operating within legal boundaries. The ongoing conflict in the Strait of Hormuz has affected global oil prices, but India remains relatively unaffected compared to other Asia-Pacific nations.