The Times of India reports: Unfazed by US sanctions and Israel linking Tehran to the attack on an Israeli embassy car here, India is set to ramp up its energy and business ties with Iran, with a commerce ministry team heading to Tehran to explore fresh business opportunities.
The team is expected to go to Tehran later this month to discuss steps to expand India’s trade with Iran, part of a larger strategy to pay for Iranian oil, said highly-placed sources.
Despite the US and European Union sanctions on Iran, India recently sealed a payment mechanism under which Indian companies will pay for 45 percent of their crude oil imports from Iran in rupees.
Not just oil, India is also stepping up the refurbishing of the Chabahar Port in Iran and a strategic railway link that will offer it direct access to Afghanistan and the energy-rich Central Asia.
RE: “Despite the US and European Union sanctions on Iran, India recently sealed a payment mechanism under which Indian companies will pay for 45 percent of their crude oil imports from Iran in rupees.” ~ The Times of India
MY COMMENT: Indian companies will pay for 45 percent of their crude oil imports from Iran in rupees (rather than U.S. dollars) because of (not despite) the US and European Union sanctions on Iran.
Consequently, you can say bye-bye to the U.S. dollar being the world’s reserve currency! The sanctions on Iran are really accelerating the demise of the U.S. dollar as the world’s reserve currency.
Talk about shooting yourself in the foot!
Reply to deicerson3870,
Splendid observation on what sanctions are doing to the US dollar. But another problem is the trade ties that are being developed with India, and China. It will be a loss to the US and the EU when a country the size of Iran trades with these countries as opposed with the US and EU. When you consider the state of the economy in the EU this will be a problem. Also, the lost opportunities of investment and developing the region.