Indian oil refineries are reportedly making payments for Iranian crude in Chinese yuan through ICICI Bank, following a temporary sanctions waiver granted by the United States.

According to Reuters, the waiver issued last month allowed limited purchases of oil from Iran and Russia for 30 days to help ease rising global oil prices amid ongoing conflict.

Sources revealed that Indian Oil Corporation recently bought around 2 million barrels of Iranian crude worth approximately $200 million. This marks India’s first official purchase of Iranian oil in seven years.

Additionally, India permitted four vessels carrying Iranian crude for Reliance Industries to dock at its ports. Both refiners are reportedly using ICICI Bank’s Shanghai branch to transfer payments in yuan to sellers, although the identities of the recipients remain undisclosed.

Due to longstanding sanctions on Iran, payment mechanisms have remained a major challenge for buyers. The use of yuan highlights evolving financial arrangements aimed at bypassing restrictions while maintaining energy supply.

The development signals a shift in global oil trade practices as countries explore alternative payment systems under geopolitical constraints.