Berlin, April 05: A plan for India to funnel oil payments to Iran through Germany’s central bank at a time when Tehran faces international sanctions has been scrapped, a German government official said today.
The deal, which reportedly would have been worth up to USD 13 billion a year, has not been forbidden by the German chancellery, but the government did hold talks about it with the Indian government, the official said.
The arrangement required Berlin’s approval due to tight financial controls amid international sanctions against Iran, whose government is suspected of developing nuclear weapons.
“The Indian counterparts came forward saying they wanted to use other means of payment from now on,” the official said. He spoke on condition of anonymity due to the sensitivity of the issue.
-Agencies