Before 2019 India and Iran used to be strong trade partners with a 17billion dollar trade alone in Financial Year 2019. However, due to sanctions put on Iran by the erstwhile Trump administration of America, trade between India and Iran came down to less than 2billion dollars in the next financial year.

However, in the recent turn of events, similar sanctions have been issued against Russia. In which case Russia had offered its oil to India at a discounted price of 25-27%. The Indian companies have gladly accepted the offer as Indian Oil (IOCL) which is the country’s largest oil refiner has signed a contract for 3million barrels of Russian crude oil while the second-largest company Bharat Petroleum (BPCL) has signed a contract for 2million barrels.

Taking the situation into cognizance and India’s ignorance of statements made by western powers, Iran has played its cards at a very appropriate time as Iranian ambassador to India Ali Chegeni, proposed reinstating the rupee-rial trade mechanism for the export of oil & gas to India.

The rupee-rial arrangement was one in which Indian oil companies used to pay in rupees to local Iranian banks, which then used the currency to pay for imports from India. Chegeni added that this arrangement has the potential to cross 30billion dollars if the two countries can revive their old bond in terms of trade.

The ambassador also mentioned that such a mechanism will help the two countries to deal with each other directly without any third-party interference. Along with that he also proposed finding out ways to re-establish the Iran-Pakistan-India gas pipeline for its transportation to India.

The recent advances by Russia and now Iran can surely be a boon for India which is the world's third-biggest oil importer as well as consumer and covers almost 80% of its demands via imports. At a time when Europe on one hand condemns and puts sanctions on Russia every single day and on the other continues to use Russian natural gas without any significant cutbacks, New Delhi should not face any hindrance in making its decision to Iran’s offer.