December 20, 2018 09:37
News ID: 3697

(Persia Digest) – The Indian Ambassador to Iran has announced: “High ranking Iranian and Indian officials have agreed to sign an MoU for preferential trade. This will be concluded shortly with the travel of an Iranian delegation to India.”

Speaking at the “India – A window beyond sanctions” forum at the Tehran Chamber of Commerce (TCCIM) on Wednesday, Saurabh Kumar added: “There are two major agreements between Iran and India. The first is for “Preferential trading” and the second for “Bilateral investment”.

He said the two MoUs are on the verge of being finalized, adding: “This will provide an excellent framework for joint projects between the two countries.”

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He pointed out that India and the port of Chabahar were exempted for oil sanctions imposed on Iran, saying: “The UCO Bank mechanism for trade in rupees is ready to conduct business with Iran.”

The Indian Ambassador to Tehran added: “The only issue with UCO Bank is that Iranian oil revenues will be taxed; whereas this did not happen in the previous round of sanctions. This can be resolved by the Iranian Central Bank (CBI).

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Persia Digest reports that Iran’s oil revenues in India will deposited in rupees at the UCO Bank for the use of Indian goods importers. With the activation of the Special Purpose Vehicle (SPV) mechanism, 50 percent of these funds will be exchanged into euros and transferred to European countries. The remaining 50 percent will remain in rupees at the UCO Bank.

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