Gustavo Vianna-Biehler from Banco de la Nacion Argentina saw my piece in ACAMS Connection that I posted yesterday on the Publications page, and asks:
A substantial portion of Iran’s foreign trade (oil) is with China.
Does China participate in the Iran sanctions agreements?. What about India?.
Could it be the case that foreign exchange between these countries and Iran
is settled in currencies other the USD dollars?
While it is always possible that the oil is traded in a currency other than USD, or that the FX deal is against another currency, it’s not likely. The fact is that, to be sanctioned under the NDAA relating to petroleum purchases, it’s the fact that you bought Iranian oil, not how you paid for it, that draws the sanctions.
Now, you’ll also note from this Reuters story that China and India were given a 180-day exemption from NDAA sanctions on December 7th. Also, based on their size and the interconnections between their economies and the US, I would be shocked to see any of their financial institutions sanctions.
Categories: Iranian Sanctions