However, the country has argued that it can not feasibly end all imports of Iranian oil, meaning it may be forced to use creative transaction systems to pay for the energy resources it imports. The Trump administration is now in talks with India on issues related to Iranian sanctions.
In May, U.S. President Donald Trump pulled out of an worldwide nuclear deal with Iran and announced new sanctions against the country, the third-largest producer among the Organization of the Petroleum Exporting Countries (OPEC).
Given the above issue, South Korean companies did not cut their trade and business cooperation with the Iranian economic enterprises in sanctions period, the ambassador reiterated.
Previous proposals by Europe could not provide enough guarantees for the sale of Iran's oil to Europe or to help Iran access to the global financial market, said Qasemi.
Under the mechanism, India used to pay in euros to clear 55 per cent of its dues through Ankara-based Halk bank.
Noting that India had hesitated to move forward on that project because of United States opposition to projects that benefit Iran, the CRS said.
"India has long sought to develop Iran's Chabahar port, which would give India direct access to Afghanistan and Central Asia without relying on transit routes through Pakistan", the report said.
During the first round of sanctions when European Union joined the USA in imposing financial restrictions, India initially used a Turkish bank to pay Iran for the oil it bought but beginning February 2013 paid almost half of the oil import bill in rupees while keeping the remainder pending opening of payment routes.
The CRS report said that during a visit to India in June 2018, US Ambassador to the UN Nikki Haley said the Trump administration might consider providing exemptions to US sanctions to enable the Chabahar work to continue because the project is vital to Afghanistan's development and reducing its dependence on Pakistan.
India may revert to paying Iran in rupees for the oil it buys from its third largest supplier as United States sanctions will from November 4 block use of U.S. dollars to settle such trades, a top official said Thursday.
Background: The United States has pressured countries to end all imports of Iranian oil and increased sanctions against the Islamic republic after U.S. President Donald Trump chose to pull his country out of the Iran nuclear deal.
Chennai Petroleum, a subsidiary of the country's biggest refiner Indian Oil Corp (IOC), has a deal to buy up to 2 million tonnes, or 40,000 bpd, of oil from Iran in the fiscal year 2018/19. SBI has told refiners it would stop handling Iran payments from November.
Looking to win waivers, India is reportedly significantly reducing Iranian oil purchases this month and next.
Till now, the 28-country bloc has not put forward a compact proposal for making payments to Iran for buying of oil.