Iran halts oil sales to India

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Iran's state oil company wants payments for oil sales to be guaranteed by India's central bank [EPA]

An oil trading dispute between India and Iran has further escalated, with Tehran refusing to sell oil to India under new rules instituted by New Delhi.

The Reserve Bank of India has said that deals with Iran must be settled outside the Asian Clearing Union (ACU) system used by it and other member nations' central banks to settle bilateral trades.

Iran's state-owned oil company has refused to accept payments for oil sales to India without guarantees from India's central bank.

Iranian sources have confirmed the dispute and Indian sources said officials from the central banks of the two countries are set to meet on Friday to further discuss the matter.

Iran, which is under UN sanctions over its nuclear programme, is likely to want to rescue a trade that is worth about $12bn a year.

While the UN sanctions.........

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