Iran: No More Free Oil Shipping for India

Image Courtesy: NITC

Iran and India have reached an agreement on terminating free shipping of Iranian crude oil to India which was in place for three years during the sanctions against Tehran. 

Iran decided to ship its oil for free on board its tanker fleet in 2013 as international companies were reluctant to do so following imposing of sanctions in order to maintain its exports.

Now that the sanctions have been lifted, Iran wants to be reimbursed for the outstanding debts, with the payments being made in Euros instead of Indian rupees, Mehr news agency reports.

The deal has been reached during Indian Oil Minister, Dharmendra Pradhan’s recent visit to Iran which included bilateral talks on oil purchase, development of Farzad-B gas field and investment in petrochemical projects, the National Oil Company of Iran (NIOC) said.

According to Iran’s Oil Minister Bijan Zangeneh, two more banking channels will be opened to handle the transactions, paving way for Iran to be paid USD 6.5 billion that India owes to the Persian Gulf nation.

The debt is expected to be paid in installments.

As for the future shipments, Iran has offered a 50% discount for transportation of oil.

 World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

3RD ANNUAL WRECK REMOVAL CONTRACTS AND OPERATIONS SEMINAR

A comprehensive guide to legal and operational aspects of wreck removal incidents…

read more >

BARI-SHIP2017

At Bari-Ship you will meet not only the owners and leaders of these companies, but also the entire spectrum of managerial, operational and production staff…

read more >

Nor-Shipping 2017

Nor-Shipping is the leading maritime event week. Their top-quality exhibition, high-level conferences and prime networking opportunities…

read more >

2ND ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR

DETAILED GUIDANCE ON HOW THE INSURANCE MARKET IS CHANGING, HOW RISKS ARE ASSESSED AND WHAT…

read more >