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Iran talks exports to Venezuela, hints at bartering option

Business Materials 6 July 2020 11:23
Iran talks exports to Venezuela, hints at bartering option

TEHRAN, Iran, July 6

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Iran has the necessary capacity to export food items, consumption goods and medicine to Venezuela, said Director General of Europe and America Affairs at Trade Promotion Organization of Iran Behrouz Olfat, Trend reports via ILNA.

"Iran's trade with other countries on that continent, including Brazil and Venezuela has positive vibes. Trade with Venezuela in the current Iranian year (began March 20,2020) is increasing in particular," said Olfat.

"Iran has exported gasoline and consumption goods to Venezuela via six ships, so we have no problem satisfying Venezuela's needs. The only question is the payment," he said.

Olfat said Venezuela paid for the gasoline with gold, however a barter option could also be possible.

"Ships can bring Iran needed goods, such as wood, aluminum," he said.

Olfat reminded that one of the important issues in trade with European companies for Iran is the process of financial transactions via the INSTEX mechanism, that practically had little functioning and did not have significant effect on Iran and Europe trade," he said.

"The Instrument in Support of Trade Exchanges (INSTEX) is for financial transaction between merchants and can not preserve trade between Iran and Europe since there are other factors involved including transportation, insurance and shipment that are overshadowed by sanctions," he said.

"The European companies' decision to trade with Iran is based on their costs and profits, however in the first three months of 2020 the trade had positive results. It should be noted that coronavirus has cut down 40 to 50 percent of Iran's trade, but the trade statistics with Latin America has shown growth," Olfat said.

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