Every year India spends $12 billion on purchasing oil from Iran, but now it is using gold instead of dollars. India might not be alone; China has suggested it would jump on board with India. New Delhi and Beijing account for 40 percent of the Iranian oil exports. Priya Sridhar gives us her report.
The EU has delivered on its threat to ban the import of crude oil from Iran, in response to its nuclear programme. The latest round of sanctions prohibits any new oil contracts, while allowing for existing deals to run until July. But Tehran is apparently finding ways to keep business pumping. Reports say Iran will keep supplying one of its biggest customers - India - but will get payment in gold instead of dollars.
Despite the new round of US and EU sanctions on Iran, India has said it would do what ever it takes to buy the Iranian oil. Finding a replacement on such a large scale is difficult as Iranian oil contributes to about 12 percent of India's oil imports.