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(Bloomberg) — India is buying crude from Iran among other countries in order to navigate the current energy crisis, the country’s oil ministry said, denying payment hurdles were impeding those purchases.

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The statement is a rare public recognition of energy ties that India largely abandoned as a result of US sanctions, but has begun to rekindle thanks to the current conflict and a subsequent Washington waiver allowing purchases of seaborne Iranian crude. The refining industry has been grappling with trading, shipping and banking arrangements, as Tehran remains under restrictive sanctions.

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“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran,” the ministry said in a statement on X. There was “no payment hurdle for Iranian crude imports, contrary to the rumours being circulated.”

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The ministry also denied reports that an Iranian crude vessel was diverted from Vadinar, India, to China because of payment troubles, adding vessel destinations are often indicative.

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It confirmed, however, the arrival of Iranian liquefied petroleum gas, with an LPG vessel carrying around 44,000 tons currently discharging in Mangalore, according to the statement.

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India has been severely impacted by the month-long war in the Persian Gulf and particularly by the effective closure of the Strait of Hormuz. Until recently, the world’s third-largest oil importer relied on the Middle East for roughly half of its crude oil and the majority of its LPG, used for cooking.

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India became a major buyer of seaborne Russian crude after the invasion of Ukraine in 2022, but its refiners have typically stayed away from blacklisted oil from Venezuela or Iran, wary of getting tangled in US sanctions.

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Since the start of the conflict, India has negotiated with Iran to allow the safe passage of vessels previously stuck in the Persian Gulf.

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