India's euro payments for Iranian imports may end on Feb 6
The new US Treasury sanctions, which go into effect from February 6, bar banks from transferring Iran's oil revenues from importing nations to Tehran.
This means Iran would be forced to keep its oil revenues in local bank accounts in countries purchasing its oil. It can only use those oil earnings to purchase "permissible" services and goods, such as food, medicine and basic medical equipment, from those oil customers as imports back into the Islamic Republic.
Officials said these sanctions, if implement, would mean that National Iranian Oil Co (NIOC) will have to essentially keep all the revenue it earns from selling oil to Indian
refiners in Uco or any other permitted local bank. These can be used for buying permissible goods and services.
This may sound workable but the problem is that Iran's imports from India are just one-fifth of the revenue it earns from sale of oil.
With US sanctions barring sale of any defence or technology intensive
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