Freed from sanctions, Iran demands payment for crude oil transport to India

Freed from sanctions, Iran has terminated its three-year agreement with India to freely transport crude oil and taking half the payment in rupees. Tehran now wants payments in Euros and discounted tariff for transport. Iran demanded that the Indian refineries like Essar Oil and Managalore Refinery clear the $6.5 billion bill for crude shipments, also in Euros. When Western sanctions crippled its trade, Iran had agreed to use its own shipping line to transport crude to India. Iranian National Oil Company now made it clear that it would no more be transporting oil for free. It will still be supplying crude in its lines but for a discounted tariff. Indain Oil Corporation owes $580 million to Iran maybe second in the queue followed by HPCL-Mittal Energy Ltd and Hindustan Petroleum Corporation. Iran had collected $3 billion in its UCO Bank account, about which it had not yet decided what to do.