National Iranian Oil Co (NIOC) has refused to accept payments for oil supplies to India without the Reserve Bank of India's (RBI) guarantee, sources with direct knowledge of the matter told Reuters on Wednesday. The central bank has said deals with Iran must be settled outside the Asian Clearing Union (ACU) system, used by central banks of member nations to settle bilateral trades.
The move was another obstacle to the Islamic Republic's exports as global pressure on Tehran grows over its nuclear programme. Two Indian industry sources said on Wednesday NIOC has turned down Indian oil firms' request for payment outside the ACU. "Indian firms had asked Iran to immediately nominate a bank in Europe through which payment can be made. But NIOC refused," said one of the sources.
When asked if NIOC was willing to accept any mechanism outside ACU, an NIOC source said: "It is not acceptable to NIOC as this exercise is in place for so many years". The sources requested anonymity due to the sensitivity of the issue.
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