Sanctions dodge: India to pay gold for Iran oil, China may follow

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India has reportedly agreed to pay Tehran in gold for the oil it buys, in a move aimed at protecting Delhi from US-sanctions targeting countries who trade with Iran. China, another buyer of Iranian oil, may follow Delhi’s lead.

The report, by the Israeli-based news website DEBKAfile, states that Iran and India are negotiating backup alternatives with China and Russia, should the US and EU find a way to block the gold payment mechanism.

Delhi’s move is seen as surprising, as earlier India and Iran said they would switch to yen and rupees. China, another major importer of Iranian oil, may follow Delhi’s lead, the report adds.

India and China need to switch from the dollar in bilateral trade, since the US and EU have issued unilateral sanctions against the Iranian oil industry and financial institutions. The sanctions would ban any bank involved in oil trade with Iran from dealing with American and European counterparts.

Both India and China, two major buyers of Iranian oil accounting for 22 and 13 percent of its total export respectively, have refused to join such sanctions. This means they have to establish a reliable way of paying for crude, independently of the parts of the global financial system controlled by New York and London.

Delhi’s current plan is to effect payments through two state-owned banks, India’s UCO Bank and Turkey’s Halk Bankasi, Turkey being another country refusing to join the sanction spree.

The US issued sanctions against Iran in December, aiming to put pressure on the Islamic Republic and make its controversial nuclear program more transparent. The EU joined the initiative on Monday, banning new oil contracts with Iran, but allowing current ones to be fulfilled.

Australia on Tuesday became the latest country to voice plans for such an embargo, although the move would be more symbolic than practical, considering the country’s small share in Iran’s oil export.

Japan and South Korea, two other major buyers of Iranian crude, are in talks with Washington over the issue, although both Seoul and Tokyo are worried that stopping their imports could hurt their economies.

Iran, which is highly dependent on its sales of oil, is reacting to the sanction campaign nervously. Tehran says it will not yield to pressure, and threatens to block the Strait of Hormuz, a key oil tanker route in the Persian Gulf.

http://rt.com/news/iran-india-gold-oil-543/

Interesting :D. China would love to grab the oil iran will not be supply europe. Cheap oil FTW.
 
The US and EU will blacklist companies and banks who violate the sanctions. There is no difference in using gold or currency. Since the US and EU is a massive market for Chinese products, I think the Chinese will be wary of openly violating sanctions. Especially since the Chinese economy is already slowing down.

The same for India. India has a lot at stake in the UK especially. Its also a member of the Commonwealth.

Publicly, the Chinese will make all the right noises for the Iranians, but on the side, the Chinese are already seeking guarentees from the Saudi's to make up the short-fall. The Saudi's have already said in public that they will increase output to make up for the loss of Iranian oil, which has angered the Iranians and why they threaten to block the Straits of Hormuz.

What you hear on RT/Pravda is for the benefit of a certain crowd of people.
 
zippy said:
The US and EU will blacklist companies and banks who violate the sanctions. There is no difference in using gold or currency. Since the US and EU is a massive market for Chinese products, I think the Chinese will be wary of openly violating sanctions. Especially since the Chinese economy is already slowing down.

The same for India. India has a lot at stake in the UK especially. Its also a member of the Commonwealth.

Publicly, the Chinese will make all the right noises for the Iranians, but on the side, the Chinese are already seeking guarentees from the Saudi's to make up the short-fall. The Saudi's have already said in public that they will increase output to make up for the loss of Iranian oil, which has angered the Iranians and why they threaten to block the Straits of Hormuz.

What you hear on RT/Pravda is for the benefit of a certain crowd of people.
Click to expand...

Unfortunately you are right.
 
Roo! said:
This is not about dodging the sanctions but about dodging the use of the useless currency that is the US dollar.
Click to expand...

Yeah these oil dudes are thinking ahead. When the world ends later this year which would you rather have in your hand - a wad of US dollars or a gold bar?
 
Roo! said:
This is not about dodging the sanctions but about dodging the use of the useless currency that is the US dollar.
Click to expand...

Indeed.

The USA is probably viewing this as an attack on their currency.
 
zippy said:
The US and EU will blacklist companies and banks who violate the sanctions. There is no difference in using gold or currency. Since the US and EU is a massive market for Chinese products, I think the Chinese will be wary of openly violating sanctions. Especially since the Chinese economy is already slowing down.

The same for India. India has a lot at stake in the UK especially. Its also a member of the Commonwealth.

Publicly, the Chinese will make all the right noises for the Iranians, but on the side, the Chinese are already seeking guarentees from the Saudi's to make up the short-fall. The Saudi's have already said in public that they will increase output to make up for the loss of Iranian oil, which has angered the Iranians and why they threaten to block the Straits of Hormuz.

What you hear on RT/Pravda is for the benefit of a certain crowd of people.
Click to expand...

They have said they will, whether or not they can is another thing.

It is interesting how the saudi's can up production when iran is involved but refused the US point blank when they asked so nicely. So it goes to show you that the saudi's don't care what the oil price is, they are only helping because iran is involved. So one wonders if a slow release of the oil would be beneficial for them. Get rid of a large supplier, oil rises the saudi's coin it.

It will be interesting though.
 
Sanctions are BS, no one has the right to tell others who they can and cannot trade with.
 
ponder said:
Sanctions are BS, no one has the right to tell others who they can and cannot trade with.
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Sadly the US has the ability to sanction anyone. It is remarkable how they can bully the planet. Some countries don't follow though, they generally end up attacked or sanctioned.

You either with the west and follow or you are a terrorist nation.
 
Long may it continue


ponder said:
Sanctions are BS, no one has the right to tell others who they can and cannot trade with.
Click to expand...

So you oppose the sanctions on Zimbabwe too then
 
Alan said:
Long may it continue




So you oppose the sanctions on Zimbabwe too then
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So mugabe never kicked out the white people, it's all a big lie or is it a fact?

Why have iran had sanctions for decades alan? If you can explain that then maybe i might see your point but as far i know iran have not done very much wrong. Their actions are fairly similar to china yet china is america's biggest trading partner. So apart these new sanctions explain the decades of sanctions iran has had.

I really hope for a good answer alan.
 
Alan said:
So you oppose the sanctions on Zimbabwe too then
Click to expand...

Yes. Sanctions have very little effect on those in power or the rich, the only one suffering is the little guy.

The more you try and control schit the more you stuff things up. Governments have gotten to big with way to much power.

Sanction have never worked.
 
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Iran, India, China, Japan and Russia already put multilateral trade agreements in place a few months ago to trade Iranian oil for gold and other hard currencies besides the US Dollar. They saw US and EU sanctions coming long ago. Russia and China are quite happy with these sanctions, and it appears Iran isn't bothered either. The oil is still being pumped at the same rate as before, with Russia and China now having an increased share of it. LOL

The Iranian Central Bank now has 350 tons of gold reserves. That's more than the reserves of the Bank of England. If there is going to be a war on Iran by the West, it will be seen as nothing more than a bank robbery to loot the gold and a desperate attempt to fix oil to US Dollars again.

The Russians have in the interim moved their aircraft carrier into the gulf to counteract any illegal aggression by the US or NATO ships in the region against Iran and Syria. At present, relations between the USA and Russia are deteriorating rapidly, with Russia recently telling the USA to butt out of Russia's domestic affairs and accusing them of destroying their new satellite with advanced weaponry.

References:

1. http://www.zerohedge.com/news/india-joins-asian-dollar-exclusion-zone-will-transact-iran-rupees
2. http://www.zerohedge.com/news/china...ter-system-and-deeper-dive-iranian-oil-bourse
3. http://www.china.org.cn/opinion/2012-01/13/content_24396345.htm
4. http://www.bullionstreet.com/news/iran-has-enough-gold-to-prevent-a-freeze/399
5. http://www.bullionstreet.com/news/iran-identifies-fresh-gold-reserves-worth-3.6-billion/499

 
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ponder said:
Yes. Sanctions have very little effect on those in power or the rich, the only one suffering is the little guy.

The more you try and control schit the more you stuff things up. Governments have gotten to big with way to much power.

Sanction have never worked.
Click to expand...

Exactly!!
 
ponder said:
Yes. Sanctions have very little effect on those in power or the rich, the only one suffering is the little guy.

The more you try and control schit the more you stuff things up. Governments have gotten to big with way to much power.

Sanction have never worked.
Click to expand...

Okay so they should be left to do what they please unimpeded.
 
Alan said:
Okay so they should be left to do what they please unimpeded.
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Alan you never answered my question regarding the decades of sanctions imposed on a country that is not dissimilar to china the US biggest trading partner, you cannot be taken seriously if you cannot answer this simple question. You say iran deserve them and compare iran to zimbabwe but how is it the same?

Why have they had sanctions for decades?
 
Alan said:
Okay so they should be left to do what they please unimpeded.
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So what exactly will sanctions help? Have you ever seen it change a country's policies? The effect they have are more negative than anything remotely positive.

Who gives some people the right to dictate to others who they can buy and sell from? It's like you telling me who I can & cannot be friends with (I'll tell you in no uncertain terms where you can get off.)
 
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