|  
  |  
  |  
  |  
  |  
  |  
  |  
  |  
17 April 2014, Thursday
 
 
Today's Zaman
 
 
 
 

Iran proposes joint barter company to evade US sanctions

28 December 2012, Friday /ŞABAN GÜNDÜZ, İZMİR
Strained under sanctions imposed by the United States, Iran is continuing efforts to skirt them and continue trade with Turkey.

As the US has now introduced measures that prevent Iran from accepting payment from Turkey in gold for the natural gas Turkey buys, Iran is looking to establish a new system that will keep trade going. Because the transfer of funds would be a violation of the sanctions, Iranian officials have proposed setting up a joint company with Turkey to conduct trade by barter.

The proposal was communicated to a delegation from the İzmir Chamber of Commerce (İZTO) while it was in Tehran on business last week. Ekrem Demirtaş, chairman of İZTO, said they will prepare a detailed report to present to Zafer Çağlayan, Turkey's minister of economy.

Because of the American embargo, Iran had been conducing trade with Turkey using gold as a method of payment. Turkey would send Turkish liras to Iran, which would then convert the liras to gold to accept as payment for the natural gas. However, at the beginning of the month, the US Senate adopted an additional sanctions package that included measures to stop the gold-for-natural-gas trade between Iran and Turkey.

When it became clear that payment in gold would be blocked by new sanctions, Iran proposed a system of barter with Turkey. The issue was on the agenda of İZTO's visit to the Tehran Chamber of Commerce, Industries, Mines and Agriculture from Dec. 22-24. Suggestions to bypass the trade problems were discussed in the talks with chamber head Yahya Ale Eshaq and Iranian Deputy Industry, Mines and Trade Minister Hamid Safdel.

The Iranian side proposed the establishment of a joint company to conduct trade by barter. Demirtaş said he believes it will be possible for Turkey to conduct business with Iran by barter. Noting that Iran, as is goes through difficult times, wants to see Turkish businesspeople at its side, Demirtaş said: “Because of the embargo, no transfer of money is possible between the two countries. Payment in gold has also become difficult after the US introduced additional measures. So, in the talks, barter was brought up as a method that would allow bilateral trade to keep going.”

Though barter may seem like a primitive way to conduct trade, it is used around the world. “It is possible to conduct trade between the two countries by barter, but it should be done according to rules,” he commented.

The bilateral trade volume between Turkey and Iran is $20 billion, shared almost equally by the two countries, but Demirtaş believes it is possible to double this figure.

 
 
COMMENTS
This portion of the article:( When it became clear that payment in gold would be blocked by new sanctions, Iran proposed a system of barter with Turkey) is an indication , that, These people must be admired for using PREVENTION method, the sanction hasn't been put into effect yet, but they are r...
Zahra Niknafs
Iran see Torki differently from the rest of the world ,The rest of the world focuses on Turkish Government ,Iran focuses on Turkish people .That should explain the apparent pradoxes in Irano Turkish affairs seldom taken into account by out sid observent..We may, I just say may we in Iran have ...
Esfandyar Khan
How come they have not , come up with the idea of Gas for land Yet.:) Beside the Iranians, Turks and the Jews are all like the member of an extended family , they fight with each other constantly but they can not live without each other either, where ever there is a news of one the other two is rig...
Zahra Niknafs
Sorry this portion of my comment was deleted .The proposal was communicated to a delegation from the İzmir Chamber of Commerce (İZTO) while it was in Tehran on business last week. Ekrem Demirtaş, chairman of İZTO, said they will prepare a detailed report to present to Zafer Çağlayan, Turkey's minist...
Zahra Niknafs
After reading this Article: Iran proposes joint barter company to evade US sanctions 28 December 2012 / ŞABAN GÜNDÜZ, One can just love Yahya Ale Eshaq :) and the Iranians involved, they all are carrying the very same Economic genetic DNA.I guess enough said.
Zahra Niknafs
Click here to read all user comments
NATIONAL  Other Titles
Chief ombudsman laments low implementation of KDK recommendations
'Banning social media disaster for any government's global image'
Nana Zeyini dies at age of 120
Turkey's Gül says candidacy in presidential election not yet settled
92,000 die of cancer each year in Turkey
Ministerial bureaucrats purged after being profiled by MİT
Purges in police force leading to higher crime rate
Four-year-old dies after being found with slit throat, wrist
Report: Naval command allegedly profiles personnel
PM avoids suing critics of corruption out of fear ‘truth may come out'
Armenian Akdamar church restoration nears completion
Ruling AK Party to determine presidential candidate toward end of May
Probe launched into Afyonkarahisar explosion on suspicion of terrorism
Legal complaint issued over Mazhar Bağlı’s hate speech
American journalism school offers free online training in Turkish
AK Party deputies pass MİT law article-by-article despite warnings
AK Pary government punishing reassigned police officers
Commemorations for former President Özal, supporter of Turkish schools abroad
Gag order on case file in Yazıcıoğlu's death lifted
Erdoğan threatens judges, prosecutors in party group speech
Opposition leaders say PM turning Turkey into intelligence state
Opposition CHP leader likens Erdoğan to Hitler, Mussolini
Nearly 90 police officials purged in southeast Turkey
Nearly 280 police officers reassigned in four provinces
Twitter executives meet with Turkey's President Gül
...
Bloggers