India Oil Refiners Said to Pay $700 Million to Iran on Sept. 30

  • Equal amount expected to be paid in Oct., people familiar say
  • First payment this year as sanctions on Iran near end

Indian oil refiners will pay Iran $700 million on Sept. 30 for crude oil imports, their first payment this year as international sanctions on the Persian Gulf nation are set to be eased, said people familiar with the matter.

An equal amount is expected to be paid next month, the people said, asking not to be identified before an announcement. In November, the refiners paid Iran $400 million of dues, which accumulated since early 2013.

Indian refiners including state-owned Mangalore Refinery & Petrochemicals Ltd., Indian Oil Corp. and Hindustan Petroleum Corp. and non-state company Essar Oil Ltd. owe Iran about $6.4 billion, blocked because of international sanctions. Iran is looking to boost crude supplies after it reached an agreement with six world powers on July 14 in Vienna to curb its nuclear ambitions in exchange for the easing of sanctions.

The Indian refiners will pay state-owned UCO Bank in rupees and the bank will remit the amount to Iran in dollars through the Reserve Bank of India, the central bank, the people said.

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