India found a way to continue paying Iran for crude oil imports by opening an account at a bank in India, an Iranian envoy confirmed.
New Delhi had paid about $1 billion per month through Turkish channels for Iranian crude. In a move meant to get around tightening sanctions imposed on Iran, New Delhi will pay 45 percent of its debt using rupees an Indian bank account opened by Iran, the BBC reports.
"We have had several rounds of talks, including in Tehran last week and a mechanism agreeable to both sides has now been reached," Iranian Ambassador Seyed Nehdi Babizedeh was quoted as saying. "One of the banks is United Commercial Bank of India. I cannot disclose names of other banks."
India imports about 370,000 barrels of oil per day from Iran, about 12 percent of the country's overall crude oil imports.
European and U.S. governments have targeted Iran's energy sector and central bank with economic sanctions as punishment for a controversial nuclear program. There are concerns that Iran is working on technology needed to produce a nuclear weapon, though Tehran maintains its intentions are peaceful.