America is giving 180 days (6 months) to India with restrictions imposed on oil imports from Iran.
Now India is working on another front, which can benefit the country. India and Iran are working on a system under which after importing oil, India can pay its currency in its own bank and in its own currency. Let America’s restriction on relations with Iran be effective from Monday.
India will restore the old system of payments in an account of UCO Bank. UCO bank does not have international exposure, hence there is no such threat to restrictions. Earlier Iran was paid in two parts, 45 per cent of the payment was made in the bank account of UCO Bank, while 55 per cent was in the Euro. This time Iran will accept all payments in Rupees from UCO bank.
It is believed that Iran used this money for the payments of imports from India. One thing is also that if Iran’s banks are banned from the SWIFT payment system, then India will be still able to pay its oil imports. Explain that the second step of US sanctions will be to target Iran’s energy sector, shipping, shipbuilding and financial sector.
India feels that when this SPV becomes operational it will become the second alternative arrangement of payments. At the same time, according to US officials Washington will not be relieved of sanctions again. US official close to White House said, “We are making careful economic pressure without increasing the oil price with great care.”
In September this year a 2+2 dialogue between INDO-US were held in New Delhi, where the Indian side had clearly cleared its stand upon oil sanctions. They told that your (read US) policy could not harm our priority please make sure. After the conclave India took an alternative way to reach up to Iran for importing oil after sanction comes into effect.