The rumour-mongering DEBKAfile Israeli website claimed that in order to circumvent US and EU laws that will force the these governments to punish any banks (including foreign banks) that handle financial transactions with Iran for oil, India plans to ship gold directly to Iran as payment. Since DEBKAfile publishes crap all the time, this would normally be ignored except
Indian government had already said that it does not plan to abide by US or EU sanctions, and claimed that it will only follow UN sanctions. India has also said that Iranian oil is too important to it to stop buying, and that it will seek alternate ways of paying for Iranian oil to avoid US sanctions
India’s government is not denying rumours of a oil-for-gold payment plan.
Gold prices are currently trending around the $1,730 per ounce mark, within touching distance of their 60-day high of $1,747/oz, and up 10 per cent in the first 30 days of 2012.
Fuelling the bullion’s newfound drive are rumours that India and China, one of the world’s largest oil consumers, are secretly mulling paying in gold for Iranian oil, and bypassing a European Union (EU) oil embargo on Iran, effective from July 1, 2012.
The EU voted last Monday to ban oil imports from Iran. The move came after a defiant Iran announced earlier in January that it had launched a nuclear enrichment programme at a well-protected underground facility near the city of Qom.
Re: Rumours that India will bust Iran financial sanctions by paying for oil with Gold
I think we knew where India was going to stand on this issue. Regardless of how India pays for Iranian oil, it will buy the crude at a deep discount. These sanctions are still a shotgun to the stomach for Iran.
Re: Rumours that India will bust Iran financial sanctions by paying for oil with Gold
Its interesting that India is supporting Iran? Where does Pakistan stand on this matter?
India did backed off earlier of Gas Pipeline project whereas Pakistan went ahead and they are working on the project, i.e. putting up gas pipe line... now let see how long India can resist this pressure...
Re: Rumours that India will bust Iran financial sanctions by paying for oil with Gold
IPI has nothing to do with it. That was a proposed deal which was gonna come thourgh pakistn. no cookies for guessing what was major factor influencing india's decision.
Regarding this case we have an ongoing relationship and matter is stuck at the payments. west can suck it up but it cannot stop paying us to iran.
Re: Rumours that India will bust Iran financial sanctions by paying for oil with Gold
India buys 12 million gallons of crude oil per month from Iran, and Iran is second largest supplier after Saudi Arabia. Stopping of supply means higher prices of oil. It is India's domestic compulsion to stand for Iran unless we find another alternative source. Chinese are going to stand for them and so are Russians.
Last time India was under US pressure when Palestine was vying for UN membership because entire BRICSA was supporting, If entire BRICSA stands for Iran, India has to follow the suit.
But anyhow It is interesting development and outcome would set precedent for India's foreign policy.