Baku, Azerbaijan, Oct.6
Trend:
With “Special purpose vehicle” for circumventing the US sanctions on Iran and by victory of Iran in the International Court of Justice (ICJ) and its decision on Iran`s demand for the suspension of debilitating nuclear-related sanctions imposed by the United States, the state of Iran`s economy is getting better, the deputy head of Iran Chamber of Commerce, Industries, Mines and Trade Jamshid Edalatian told Trend.
The mechanism that EU was supposed to consider as payment method for exchanges and trade with Iran is now strengthened by the ICJ ruling, he said, adding that EU, Russia and China`s alternate payment mechanism called the Special Purpose Vehicle or SPV is a means to bypass any additional US sanctions.
The UN’s international court of justice has reprimanded the US over its re-imposition of sanctions on Iran, ordering Washington to lift restrictive measures linked to humanitarian trade, food, medicine and civil aviation.
The Hague ruling is a victory for Iran after it complained to the ICJ in July that the return to sanctions imposed by Donald Trump following the US withdrawal from the 2015 landmark nuclear agreement was in violation of the Treaty of Amity, a 1955 pre-revolutionary friendship treaty.
Jamshid Edalatian, referring to SPV, said this mechanism is complex as it`s based on barter so it will take some time to settle in the economy, but after coordinating with the system, it will be much easier for businesses and traders of both sides to trade with each other than in previous years.
“Today some countries stopped purchasing oil from us, but it is likely that our oil exports will be as high as one million barrels a day, while the oil price rises a lot,“ Edalatian said and added that Iran has calculated its budget at $40 per barrel, but today's oil price has doubled.
The state of the economy is getting better, he noted.
He referred to the reports on detention of 280 suspects in a money-laundering investigation into the transfer of about 2.5 billion lire ($419 million) worth of foreign currency to bank accounts abroad by Turkish police last week and said that they were essentially US and Saudi`s agent whose duty was to withdraw money from Iran.
“Thanks to Turkey, this detention would have a huge impact on our foreign exchange market and the country's economy in the coming days,“ he said.