New Delhi, April 19: Indian refiners have begun settling payments for Iranian oil in Chinese yuan through ICICI Bank, as a temporary US sanctions waiver allowing such purchases comes to an end.
According to reports, the payments were routed via ICICI Bank’s Shanghai branch to facilitate transactions outside the US dollar system. This move comes amid longstanding financial restrictions on Iran, which have made dollar-based payments difficult.
The purchases were made under a 30-day US waiver introduced in March to ease global oil supply pressures during the ongoing Middle East crisis. However, the United States has decided not to extend the waiver, with the exemption officially expiring on April 19.
During this limited window, Indian companies—including Indian Oil Corporation—resumed imports of Iranian crude for the first time in nearly seven years. Some shipments were valued at around $200 million, reflecting India’s urgency to secure energy supplies before restrictions returned.
The use of yuan instead of dollars highlights a strategic shift in trade mechanisms, allowing India to bypass financial barriers linked to sanctions. Analysts say this reflects a broader trend of currency diversification in global energy trade.
However, with the waiver now expired, Indian refiners are expected to halt further purchases from Iran to avoid potential secondary US sanctions on buyers and financial institutions.
The development underscores the complex balancing act India faces between ensuring energy security and navigating geopolitical pressures, especially amid ongoing instability in global oil markets.