India finds way to buy Iranian crude?

NEW DELHI, Feb. 3 (UPI) -- New Delhi, through its state bank, found a way to pay for crude oil bought from Iran after oil trade was threatened by currency issues, an official said.

The Reserve Bank of India in late December closed the Asian Clearing Union route for Indian purchases of Iranian crude oil in part because of U.S. economic sanctions targeting Iran's energy sector.

Tehran said it would sell crude oil to India on credit while the sides work on ways to pay for the transactions.

An Indian official said on condition of anonymity that the State Bank of India would pay for Iranian crude oil with euros funneled through German bank Europaeisch-Iranische Handelsbank AG, Bloomberg News reports.

Washington hit the EIH with sanctions last year, accusing the bank of acting as a facilitator for Iran's nuclear and missile programs.

Iran pumped more than 3.5 million barrels of oil in December, putting it in the No. 2 spot in the Organization of the Petroleum Exporting Countries. Iran is India's second-largest supplier of crude after Saudi Arabia.