Gulf News quoted Iran as saying that ruling out gold as a mode of payment Indian companies will pay for 45% of their oil imports from Iran in the Indian currency as part of a mechanism agreed between the 2 countries.

Mr Syed Mahdi Nabizadeh Iran's ambassador to India said that "Both sides are satisfied. Iran could also increase its imports from India to settle part of the payments. With the US and the EU imposing fresh sanctions on Iran, India has been exploring various ways to pay for Iranian oil.”

A multi ministerial team from India visited Iran last month to work out the payment mechanism. India has made it clear that regardless of the sanctions, it will continue to buy Iranian oil as it contributes around 12% of its oil imports and is necessary for the country's energy security.

(Sourced from Gulf News)