TEHRAN, Aug. 2 (UPI) -- Iran is moving to resume crude oil shipments to India after a payment settlement was reached but no deliveries are expected right away, a source said.
Iran said it would cut oil supplies to India, one of its largest consumers, starting Monday. New Delhi had racked up billions of dollars in debt to Tehran because it was getting crude oil deliveries on credit.
However, India was having trouble finding a way to pay Iran for oil because of international sanctions against Tehran.
Both sides announced an agreement to settle the payment issue through a Turkish bank by using euros. A source told the semiofficial Fars News Agency in Iran, however, that a license for deliveries of crude oil to India hadn't been issued.
The Fars report added that Indian oil companies were to route the payments through Halkbank in Istanbul following a test payment.
New Delhi had moved cash through German bank Europaeisch-Iranische Handelsbank AG to buy oil from Iran.
EIH received euros for the Iranian crude only when Indian importers issued notes saying the money wouldn't be used for sanctioned goods. Officials in the U.S. Treasury Department said that wasn't enough and the German bank said that it stopped the payment scheme.