Baku, Azerbaijan, Jan. 7
By Umid Niayesh - Trend:
Iranian government has said it banned the import of products from Saudi Arabia, as well as the import of goods of the Saudi origin from other countries.
The decision was made during an extraordinary meeting of Iran's Cabinet of Ministers, headed by President Hassan Rouhani, on Jan. 7, the state TV channel IRINN reported.
The move comes after Riyadh cut diplomatic ties with Tehran on Jan. 3, after Iranian protesters, angered by Saudi Arabia's execution of a prominent Shia cleric Nimr al-Nimr, attacked Saudi embassy in Tehran and consulate in Mashhad.
Riyadh at the time also announced that it halted air traffic and trade links with the Islamic Republic.
Bahrain, Sudan, Djibouti and the UAE have also rallied to Saudi Arabia's side, breaking off or downgrading relations with Iran in recent days.
Iran-Saudi Arabia trade turnover stood at $146 million from March to September 2015.
Iran exported $113.1 million worth of goods to Saudi Arabia during the first seven month of the current Iranian fiscal year (started March 21, 2015), meanwhile imports accounted for $33.1 million.
It should be noted that the food industry company Savola, one of the few Saudi firms present in Iran, may be sold in the wake the diplomatic row between the two countries.
The company's revenues in Iran totaled $534 million in the first nine months of 2015, according to Reuters. Even before the fallout, the company was under scrutiny in Iran, with several lawmakers questioning Savola's perceived monopoly over edible oils business in the country and local producers accusing it of dumping.
The Saudi company owns 80 percent of shares in Iran's Behshahr Industrial Company, which accounts for 40 percent of the country's edible oil market.
During the Jan. 7 meeting, Iran's government also decided to continue a ban for Umrah pilgrimage of Iranians, which was set in April last year.
The ban was imposed following misconduct by Saudi security guards at Jeddah King Abdulaziz International Airport sexually harassing two teenagers on pilgrimage from Iran.