TEHRAN, July 7 (UPI) -- New Delhi has deposited funds in a shared account, settling its debt to the National Iranian Oil Co., a director said.
Mohsen Qamsari, head of international affairs at the NIOC, said both sides agreed to deposit money in a shared account for oil trading.
"As a procedure in financial transactions, Indian oil buyers have constantly, including in recent months, deposited the money in the shared account and neither have avoided buying Iran's oil nor evaded their duties to pay the bills," he was quoted by the Iranian Oil Ministry's Petroenergy Information Network as saying.
Earlier reports suggested New Delhi had racked up a $6 billion debt to Iran for the 400,000 barrels of oil per day it received from Iran since December. Tehran has supplied crude oil to India on credit since then because New Delhi couldn't find a way to pay for oil because of international sanctions on Iran.
The NIOC during the weekend suggested oil exports would stop in August if New Delhi couldn't figure out a way to pay off its debt.
Qamsari didn't offer specifics about the payment mechanism. Iran is one of the primary oil suppliers for India.