India pays for Iranian oil in yuan workaround emerges under U.S. sanctions waiver
Indian refiners, including Indian Oil Corporation and Reliance Industries, are reportedly using Chinese yuan to pay for Iranian oil under a temporary U.S. sanctions waiver.
Transactions are being routed through ICICI Bank in Mumbai, with funds transferred to Shanghai accounts before reaching Iranian sellers effectively bypassing the traditional dollar-based system.
The shift reflects ongoing challenges in using standard banking channels for Iran-related transactions, even under temporary exemptions, pushing buyers toward alternative financial pathways.
The current U.S. waiver, granted to several countries including India, is expected to expire soon, potentially tightening restrictions and increasing pressure on such arrangements.