As it follows from the Memorandum of Understanding, which was signed between India and Iran last month, the countries have rejected the US dollar as a denomination currency in a set-off of the trade, particularly of supply of the Iranian oil to India. According to this document, the supplies of the Iranian oil will be denominated in Indian rupees.
Indian oil refineries will transfer the funds for the imported oil to the Iran National Oil Company (NIOC) in one of the largest Indian banks - UCO Bank. A half of these funds will be paid for importing of Indian goods into Iran.
The U.S. sanctions aimed against the Iran, which embrace the export supplies of the Iranian oil, have started on November 5. However, the White House has given temporary permissions to a number of countries to import the Iranian oil. Among these countries are Greece, India, Italy, China, Taiwan, Turkey, South Korea and Japan.
According to experts’ estimates, as of today, the export of the Iranian oil has already shrank by 1 million barrels per day.