Exclusive: Iran wants euro payment for new and outstanding oil sales - source

rueters ^ | 02/05/2016 | Nidhi Verma

[BenLurkin]

Iran wants to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros and is billing new crude sales in euros, too, looking to reduce its dependence on the U.S. dollar following last month's sanctions relief.

A source at state-owned National Iranian Oil Co (NIOC) told Reuters that Iran will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia's Lukoil.

"In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the NIOC source said.

...

Iran has also told its trading partners who owe it billions of dollars that it wants to be paid in euros rather than U.S. dollars, said the person, who has direct knowledge of the matter.

Iran was allowed to recover some of the funds frozen under U.S.-led sanctions in currencies other than dollars, such as the Omani rial and UAE dhiram.

Switching oil sales to euros makes sense as Europe is now one of Iran's biggest trading partners.

...

Iran has pushed for years to have the euro replace the dollar as the currency for international oil trade. In 2007, Tehran failed to persuade OPEC members to switch away from the dollar, which its then President Mahmoud Ahmadinejad called a "worthless piece of paper".

The NIOC source said Iran's central bank instituted a policy while the country was under sanctions over its disputed nuclear program to carry out foreign trade in euros.

"Iran shifted to the euro and canceled trade in dollars because of political reasons," the source said.

[cloudmountain]

And regarding the gratuitous insults, you started it by saying "India will return the money in beggars, thieves, murderers...a la Fidel Castro's move in sending US their jailbirds and poor folk "boat people." Iran was FOOLISH not to get the BILLIONS up front. They know how the Indian government works" .

Castro DID do that. I wouldn't be surprised if India would do it. Their government is right up there with the biggies in corruption. That is because of the power of free press in the West that we know these things about the third world. Hard NOT to know it and comment on it.

Are you a "chief" in the India army or what? Just curious. Not too many people can claim that title...or is it self-bestowed? Even if you are a local Indian chief, you would still be of Asian descent, though not necessarily Oriental-Asian descent, but of Siberian-hunter Asian descent.

[IndianChief]

Castro DID do that. I wouldn't be surprised if India would do it. Their government is right up there with the biggies in corruption.

It was, but only till an Italian Lady was the de facto Empress of India. She was dumped by the voters in 2014. She is the President of the Congress party, equivalent to your Democrats. Now top level corruption has been almost eliminated. And it is not only the US media that is free, though most on FR believe it is heavily in favour of the Democrats. The Indian media is equally free and leftist.

I am the CEO of an Indian company.

[cloudmountain]

It was, but only till an Italian Lady was the de facto Empress of India. She was dumped by the voters in 2014. She is the President of the Congress party, equivalent to your Democrats. Now top level corruption has been almost eliminated. And it is not only the US media that is free, though most on FR believe it is heavily in favour of the Democrats. The Indian media is equally free and leftist.
I am the CEO of an Indian company.

Now top level corruption has been almost eliminated.
Pardon me if I don't believe you. But, it's nice that YOU have been convinced. It WOULD be the first time in India's long history that it happened. The oldest civilizations (India, China) simply CANNOT run without the top echelon corruption.

I am the CEO of an Indian company.
Now THAT I believe wholeheartedly...and that you love your country.
There OUGHT to be more people like you.