Tehran, Iran, Dec. 7
Trend:
Europe is suspending the purchase of Iran’s steel due to uncertainty over Special Purpose Vehicle (SPV), an Iranian official said.
“Europe has announced that due to US sanctions and uncertainty over SPV, they would not extend their steel purchases,” Trend reports citing ILNA’s interview with Manager of South Steel Investment and Development Company Ahmad Donya Nour.
The European Union has proposed Special Purpose Vehicle that could help match Iranian oil and gas exports against purchases of EU goods in an effective barter arrangement.
However British, French and German attempts to establish SPV were faltering because no EU country was willing to host it for fear of its banks provoking US penalties, including a ban from US markets.
“Our trade contracts with India and China have remained for six months; during this time great volume of our products will be exported to those countries. But our contract with Europe has ended and our European partners have announced they would not extend the contract due to SPV problem,” Donya Nour noted.
“We currently have no problem in steel trade with Iraq since the transactions are done using other currencies rather than dollar or euro; but in other countries there would be problems in the future regarding the revenues return, therefore the exporters are reviewing the issue with government officials,” he added.