Indian Refiners Pay for Iran Oil in Yuan via ICICI Bank Amid Sanctions Twist

Indian oil refiners have begun paying for Iranian crude in Chinese yuan through ICICI Bank’s Shanghai branch, marking a significant shift in global oil trade dynamics. The move comes under a temporary U.S. sanctions waiver issued to ease rising oil prices during the ongoing Middle East conflict. :contentReference[oaicite:0]{index=0}

State-run Indian Oil Corporation (IOC) recently imported around 2 million barrels of Iranian crude ts first such purchase in nearly seven years valued at approximately $200 million. Private giant Reliance Industries has also reportedly received Iranian shipments. :contentReference[oaicite:1]{index=1}

Interestingly, the payment structure is unconventional, with refiners paying up to 95% of the cargo’s value upon arrival in Indian waters instead of after discharge. The use of yuan instead of U.S. dollars reflects growing attempts to bypass dollar-based transactions amid sanctions and geopolitical tensions. :contentReference[oaicite:2]{index=2}

India had halted Iranian oil imports in 2019 due to U.S. sanctions but resumed limited purchases following recent supply disruptions caused by the conflict in West Asia. However, the current waiver is short-term and expected to expire soon, with no plans for extension making this a temporary but strategic adjustment. :contentReference[oaicite:3]{index=3}

As global oil markets remain volatile, India is balancing energy security with geopolitical risks, while also experimenting with alternative payment systems beyond the dollar.