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EU Advisor: Iran, India have to replace euro with other forex

Iran Materials 15 May 2012 11:16 (UTC +04:00)

Azerbaijan, Baku, May 15 /Trend, D.Khatinoglu/

India and Iran agreed to pay 45 percent of Iranian oil purchase through rupee and the rest though euro, Mohammad Mehdi Rasekh, secretary general of Tehran's Chamber of Commerce told Mehr News Agency on Sunday, but The European Union economic advisor Mehrdad Emadi told Trend that Iran-India trading through euro is impossible because of the EU sanctions on Iran's Central Bank imposed on Jan.23and they should replace other foreign exchange with Europe's official exchange.

Regarding Iranian 50-member delegation's visit to India last week, Rashekh said that Indian side welcomed Iran's keen to boost bilateral economic relations.

"Two countries agreed to increase trade turnover, including oil deals, from current $12 billion to $25 billion," he said. "The sides' non-oil trade will increase from $4 billion to $10 billion."

Rashekh added that the Indian officials and businessmen welcome the Iranian Government's latest decision to import $24 billion food cargoes. He emphasized their might to supply wheat, sugar, rice and other food to Iran as much as Iran demands.

The Indian Central Bank has banned the deal of these countries' companies with Iran through Asian Clearing Union since late 2010. Now transferring money from Indian banks to Iran is impossible and India makes the payment of Iranian oil purchase via Turkish Halk Bank. But after July1 when the EU sanctions on Iran's oil and Central Bank enter into force, the payment via Turkish Bank will become impossible.

India and Iran have several meetings and negotiations to trade in bartering system and removing USD from trades.

The EU members imposed sanctions on Iranian Central Bank, this country's oil purchase and rendering insurance services to ships carrying Iranian oil. The sanctions will take force on July 1.

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