The US is facing severe sanctions on Iran. The United States has warned that the countries that trade with Iran should immediately abandon the trade relations with Iran. The US sanctions imposed by the US will come into effect on 4 November. India is considered one of the countries with the highest quantity of crude oil imported from Iran, and the US prohibition announced by the US would have a profound effect on India.
In this context, the Indian public sector oil firms have been contracting Iran for the next month to import crude oil. India is trying to import crude oil to Iran by $ 1.25 million tonnes of imports from the Indian Oil Corp (IOC) Mangalore. The Rubber Petroleum Chemicals Limited signs the contract.
While the euro transaction that India regularly receives for crude oil is crippling, the authorities are doing business with Iran in exchange for the Indian rupee. The Iranian government has also agreed to it. Steps are being taken to transfer the rupee to Iran through the UCO Bank and IDBI Bank. Iran is planning to utilize the rupees, imported from India, food grains and medicines to their country.