India looks for Iranian oil answer

NEW DELHI, Jan. 20 (UPI) -- Banking officials from New Delhi are to meet with German officials to discuss possible mechanisms for buying Iranian crude, an official said.

Indian energy companies said there hasn't been any disruption in oil supplies from Iran since the Reserve Bank of India closed the Asian Clearing Union mechanism for buying oil in U.S. dollars or the euro.

Indian Oil Secretary S. Sundareshan was quoted by the Press Trust of India as saying RBI officials would travel to Germany to meet with Deutsche Bundesbank officials to find "an alternative mode of payment" for Iranian crude, he said. No date for the trip was announced.

Sundareshan said there hadn't been any disruption in oil supplies because Iran was delivering normal crude supplies on credit.

"We are hopeful that a specific routing of funds (for oil imports from Iran) will be finalized in next few days," he added.

India is calling on Iran to list a series of banks it might be able to use to facilitate payments.

Iran is the second-largest supplier of crude oil to India after Saudi Arabia. Sanctions on Iran by the United States and other countries limit methods of doing business with Tehran, particularly in the energy sector.