• Tuesday, May 22, 2018

Europe to ditch US dollar in payments for Iranian oil – source

Discussion in 'Europe & Russia' started by BHarwana, May 16, 2018 at 8:16 PM.

  1. BHarwana

    BHarwana ELITE MEMBER

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    Published time: 16 May, 2018 07:38Edited time: 16 May, 2018 09:40
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    The European Union is planning to switch payments to the euro for its oil purchases from Iran, eliminating US dollar transactions, a diplomatic source told RIA Novosti.
    Brussels has been at odds with Washington over the US withdrawal from the Iran nuclear deal, which was reached during the administration of Barack Obama. President Donald Trump has pledged to re-impose sanctions against the Islamic Republic.

    “I’m privy to the information that the EU is going to shift from dollar to euro to pay for crude from Iran,” the source told the agency.

    Earlier this week, EU foreign policy chief Federica Mogherini said that the foreign ministers of the UK, France, Germany, and Iran had agreed to work out practical solutions in response to Washington’s move in the next few weeks. The bloc is reportedly planning to maintain and deepen economic ties with Iran, including in the area of oil and gas supplies.

    Mogherini stressed that the sides should jointly work on the lifting of sanctions as an integral part of the historic nuclear deal. “We're not naive and know it will be difficult for all sides.”

    The Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), was sealed three years ago in Vienna between Tehran and the P5+1 powers (China, France, Russia, UK, US, plus Germany). The agreement saw decades-long international sanctions lifted in exchange for Iran curbing its controversial nuclear program. On January 16, 2016, the parties to the deal announced the beginning of its implementation.

    The lifting of international sanctions gave Iran access to the world’s markets for the first time in nearly four decades. Since then, Tehran has managed to significantly increase its exports of crude.

    However, oil is pegged to the US dollar on international markets, making it difficult for Iran’s partners to make payments for crude and for Tehran to receive them. With the dollar playing the leading role on international financial markets, re-imposing sanctions would mean cutting Iran off from the global financial system.

    At the same time, dozens of contracts signed between European businesses and the Islamic Republic could be at risk of cancellation if Brussels obeys Washington’s sanctions. This would damage Iran’s economy and European firms would lose a huge market in the Middle East. Switching to alternative settlement currencies allows both sides to continue trading despite US sanctions.




    https://www.rt.com/business/426856-europe-to-ditch-us-dollar/
     
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  2. rambro

    rambro FULL MEMBER

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    Is US going to pull another libya/iraq on europe?
     
  3. BHarwana

    BHarwana ELITE MEMBER

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    I don't know what USA is going to do but this Trump decision is making Iran rich like hell. Oil is $80 per barrel today and this means more money to Iran. So what was Trump thinking.
     
  4. El Sidd

    El Sidd ELITE MEMBER

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    Always

    Nothing to do with Trump

    Per ap manoge nahi
     
  5. LoveIcon

    LoveIcon ELITE MEMBER

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    Europe will chicken out if Trump is serious about his threats.
     
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  6. Path-Finder

    Path-Finder SENIOR MEMBER

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    I suppose as one door closes another one opens. The world is no longer just revolving around the yanks and its time more players entered the arena.
     
  7. BHarwana

    BHarwana ELITE MEMBER

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    Haji sahib I agree or not nothing will happen. Oil is $80 per barrel and it countries like Pakistan who buy oil will suffer from this effect.
     
  8. El Sidd

    El Sidd ELITE MEMBER

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    You get free oil.

    Stop being paranoid
     
  9. BHarwana

    BHarwana ELITE MEMBER

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    Haji sahib kiya kha liya hai. free oil lol.
     
  10. El Sidd

    El Sidd ELITE MEMBER

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    Mujhe to esa hi lagta ha.

    Policy bani ha tu batao
     
  11. GumNaam

    GumNaam SENIOR MEMBER

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    on europe? not a chance...
    on iran? not as long as Russia sitting right on top of iran.
     
  12. newb3e

    newb3e SENIOR MEMBER

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    he cooks his food in crude oil in ko faraq nai parta!
     
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  13. GumNaam

    GumNaam SENIOR MEMBER

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    RT theek thaak lambi bhi chorta hay. Unless you see actual names of eu gov officials (which you don't in this one), take it with a truck load of salt.
     
  14. nang2

    nang2 SENIOR MEMBER

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    The choice of currency is less decided by the buyer and more by the seller.
     
  15. mohammad45

    mohammad45 SENIOR MEMBER

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    Europe to ditch US dollar in payments for Iranian oil – source
    Published time: 16 May, 2018 07:38Edited time: 16 May, 2018 09:40
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    [​IMG]
    © Ohde / face to face / Global Look Press
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    The European Union is planning to switch payments to the euro for its oil purchases from Iran, eliminating US dollar transactions, a diplomatic source told RIA Novosti.
    Brussels has been at odds with Washington over the US withdrawal from the Iran nuclear deal, which was reached during the administration of Barack Obama. President Donald Trump has pledged to re-impose sanctions against the Islamic Republic.

    Read more
    [​IMG]US imposes new sanctions on Iranian individuals and bank – treasury department
    “I’m privy to the information that the EU is going to shift from dollar to euro to pay for crude from Iran,”the source told the agency.

    Earlier this week, EU foreign policy chief Federica Mogherini said that the foreign ministers of the UK, France, Germany, and Iran had agreed to work out practical solutions in response to Washington’s move in the next few weeks. The bloc is reportedly planning to maintain and deepen economic ties with Iran, including in the area of oil and gas supplies.

    Mogherini stressed that the sides should jointly work on the lifting of sanctions as an integral part of the historic nuclear deal. “We're not naive and know it will be difficult for all sides.”

    The Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), was sealed three years ago in Vienna between Tehran and the P5+1 powers (China, France, Russia, UK, US, plus Germany). The agreement saw decades-long international sanctions lifted in exchange for Iran curbing its controversial nuclear program. On January 16, 2016, the parties to the deal announced the beginning of its implementation.

    The lifting of international sanctions gave Iran access to the world’s markets for the first time in nearly four decades. Since then, Tehran has managed to significantly increase its exports of crude.

    'We are prepared for all scenarios' https://t.co/mYsQ1hzeoW

    — RT (@RT_com) May 8, 2018
    However, oil is pegged to the US dollar on international markets, making it difficult for Iran’s partners to make payments for crude and for Tehran to receive them. With the dollar playing the leading role on international financial markets, re-imposing sanctions would mean cutting Iran off from the global financial system.

    EU and Iran to keep nuclear deal in placehttps://t.co/vE9cR5b7IFpic.twitter.com/XC5Xc5kOhj

    — RT (@RT_com) May 15, 2018
    At the same time, dozens of contracts signed between European businesses and the Islamic Republic could be at risk of cancellation if Brussels obeys Washington’s sanctions. This would damage Iran’s economy and European firms would lose a huge market in the Middle East. Switching to alternative settlement currencies allows both sides to continue trading despite US sanctions.

    For more stories on economy & finance visit RT's business section

    https://www.rt.com/business/426856-europe-to-ditch-us-dollar/
     
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