Connectivity & Partnership

Iran, India discuss trade cooperation under US sanctions

India and Iran discussed ways of continuing biliateral trade under reimposed US sanctions, Eghtesad Online news website reported.

Nov 18, 2018
TEHRAN: India and Iran discussed ways of continuing biliateral trade under reimposed US sanctions, Eghtesad Online news website reported. During the meeting, outgoing Indian Ambassador Saurabh Kumar and the Iranian official Masoud Khansari reviewed the ways to continue trade relations during sanctions. After US President Donald Trump's withdrawal from Iran's nuclear deal in May, the US has reimposed the stringent sanctions on Iran, including embargoes on Iran's banking and oil sectors, reports Xinhua.
 
The US sanctions may present a new window of opportunity for Iran-India ties, Khansari said, adding that the focus of mechanisms to facilitate cooperation between Iran and India should be laid on banking and financial cooperation.
 
He also highlighted the role of Iranian Chabahar Port in developing close cooperation with India, adding "now that the port has been exempted from US sanctions, the two sides must capitalise on this opportunity."
 
"Sanctions create many problems, but they have also created this opportunity for us to tap into neglected capabilities and capacities," he was quoted as saying.
 
Tehran Chamber is conducting studies on regional trade partners, including India, for import and export purposes, Khansari said.
 
For his part, Kumar presented a list of 1,000 goods items that Iran can import from India.
 
"Fortunately, trade based on national currencies of the two countries has become a clear and transparent mechanism, so Iran can provide a portion of its important needs by using India's rupee," Kumar said.
 
The Indian diplomat said that his country can import 300,000 barrels of crude oil per day for the next six months from Iran based on the US exemption, and half of its money will be wired to accounts belonging to the Iranian banks in Indian banks in rupees.
 
Iran can, in turn, purchase essential goods such as food, medicine and humanitarian trade goods that are exempt from sanctions, according to the report.
 
The remaining half of the oil money may be exchanged into euros or other foreign currencies for Iran to receive and transfer, Kumar added, noting that a mechanism should be developed for this money to be transferred out of India.

Leave a Reply

Your email address will not be published. Required fields are marked *

Fighting the climate change apocalypse: West should practise what it preaches

The Pew study survey found that 24 percent of Indians believe that technology can solve the climate-change problem – and definitely that's the way forward as technology is bringing down the price of green energy. And China and India can make the most significant contributions as they leap-frog to greener technologies –

Read more...

Indian government appoints new Chief Economic Advisor

The Indian government has appointed Krishnamurthy Subramanian as its new Chief Economic Advisor (CEA) in place of Arvind Subramanian, who left the post in July this year.

Read more...
Tweets about SAMonitor
SAM Facebook
SiteLock