May 9, 2012 | Quote
Indians Host Clinton While Also Wooing Iran
Mrs. Clinton never mentioned the presence of the Iranian delegation, nor the rupee payment system, yet American officials do not seem to mind. Mark Dubowitz, an Iran specialist in Washington, said a primary purpose of sanctions is to starve Iran of the dollars and euros it needs to finance the country’s nuclear program. In the past, India paid for most of its oil purchases in dollars; under the new arrangement, India will buy nearly half its Iranian oil in rupees, which are not a fully convertible currency.
“This rupee account is very helpful,” said Mr. Dubowitz, executive director of Foundation for Defense of Democracies. “They can’t convert rupees into dollars or euros. They can’t repatriate rupees back to Iran. So the only thing they can do is buy Indian goods.”