Photo: ReutersHaven’t India’s oil companies heard of Federica Mogherini? At the same time, it cuts off India from the source of about one-seventh of its oil imports, at a time when fuel prices for consumers are already at multiyear highs. Less structured routes also may play a part, such as the informal hawala system that has seen Iran through previous sanctions periods. As much as Indians like to promote the virtues of the country’s services-led development model, the Iranian sanctions reveal an Achilles’ heel. Transactions settled in other currencies don’t require US correspondent or intermediary banks so don’t risk violation of US sanctions on Iran.

Source: Mint September 26, 2018 12:00 UTC