23 November 2011 10:51 [Source: ICIS news]
By Ong Sheau Ling
Middle Eastern and Asian players are facing difficulties settling trades with their Iranian counterparts amid growing pressures to isolate
South Korean banks, which used to act as a middle man for transactions involving the import and export of Iranian cargoes, are now being restricted from handling tri-party transactions, market sources said.
Settlements should now only be directly between
Some of these players have switched to selling through traders based in
“While we change our route of selling, we also reduce our sales volume to
A number of Pakistani and Indian traders said they have avoided importing Iranian materials because of the payment issues through Dubai-based banks, which have been told not to handle Iranian trades.
“It is getting more and more difficult for us to open LCs (letter of credits) for Iranian imports, and the banks in
Volumes of Iranian HDPE film and low density PE (LDPE) film imports entering
Iranian importers are also losing business opportunities as they have to import LDPE film, HDPE film and PP products, as large quantities of domestic LDPE and HDPE film are exported.
“Foreign currency is in high demand in
Highlighting how serious the sanctions have now become, vessels originating from and owned by
A Dubai-based trader related that bank financing for PE imported from
“The bank has terminated our LC (letters of credit), saying it [the transaction] is forbidden. The impact from the
Cash payment is out of the question, according to Iranian importers, since transactions must be settled in US dollars, the availability of which is scarce and can only be obtained at a high price in the black market.
($1 = €0.74)
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