Shift in U.S. Policy May Affect UCO Bank Cooperation With Iran
IRAN NEWS ECONOMIC DESK
TEHRAN – Vice President of India-Iran Chamber of Commerce Parham Rezaei believes that change in the U.S. political policy regarding Iran will affect the cooperation of Indian UCO Bank with Iran.
Speaking to ILNA, Rezaei said that UCO Bank has issued an executive directive since the moment Americans imposed sanctions on all Iranian banks one month ago, but it does not seem to come into effect.
On the UCO Bank directive regarding halt in cooperation with Iran as of November22, he said the bank has taken action in compliance with the list of the sanctions imposed by the U.S. which have targeted al Iranian banks, and as the result, UCO Bank last week issued a directive but due to the political changes in the U.S., it is not clear whether this directive is implemented or not and the trend may change any moment.
Rezaei noted that there have been some directives in the past which have not been implemented, either. He then referred to the volume of transactions between Iran and UCO Bank, saying that if this had happened before, it would have had great impact due to Iran’s crude oil sales to India because Iran’s oil revenues were transferred to Iran through UCO Bank. But since Iran’s oil sales in the past year have significantly decreased, the country does not have much money in the bank, he stated.
Rezaei also pointed to other channels for exchanges, saying that regarding other ways for exchanges which have been announced by Iran’s Industry, Mine and Trade Ministry like imports in exchange of exports, it does not seems the bank’s decision will have major impact.
Touching upon the fate of Iran’s assets at UCO Bank, he noted that Iran’s money is not blocked in the bank and it can be used for purchase of medicines and food stuff.
Rezaei reiterated that in the past, most of Iran’s transactions were done through UCO Bank as some 70 percent of import exchanges used to be carried out via this bank.