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Iran will boost trade with India as the European Union struggles to find a way to circumvent a fresh US embargo on Tehran, Iranian Foreign Minister Javad Zarif said on Tuesday.
Brussels is working on a payment mechanism to keep financial transactions flowing with Iran, after the US ditched the 2015 nuclear deal with Tehran earlier this year and reintroduced a raft of sanctions on the country.
But Zarif told reporters in New Delhi that the EU's delay in implementing the system meant Iran would look elsewhere.
“Europeans have made efforts but couldn't... progress up to our expectations. We will expand our cooperation via various channels such as India,” Zarif said after meeting India's transport minister, as quoted by Iran's semi-official news agency ISNA.
The EU hopes its “special purpose vehicle” (SPV) announced in September will keep the nuclear deal alive and persuade Tehran to stay on board by giving companies a way of trading with Iran without violating Washington's sanctions.
But Brussels is struggling to find a host for the SPV and many EU companies are fearful of repercussions from US President Donald Trump's administration.
India, which imports around 80 percent of its oil needs, recently signed a deal with Iran to buy crude in rupees rather than US dollars, helping it get around the sanctions.
Zarif added that Iran was “very happy” that the Indian government was allowing the Iranian Bank Pasargad to open a branch in India's financial capital of Mumbai.
India also recently took over the running of part of Iran's Chabahar Port, in the Gulf of Oman, as the countries build closer ties.
“We hope, despite US sanctions, Iran and India will have more cooperation in line with the interests of the people and the two countries,” said Zarif.
Comments (22) Closed
Very good news for the whole region
At 7.5% pa growth rate India is the fastest growing economy in the world. Soon India will be world Leader which it used to be just few centuries back.
India is reclaiming her position fast. Modi will only hasten the process.
India has the worlds fastest growing economy and has the world at its feet
Good Job
Good move.
World should reduce dependence on USD, they are just printing currency, that is asset For us
It is time to give other currencies a chance like Rupee, yaun.
Why can't we join them and improve our economy?
@Babu,
Modi won't be the prime minister of India. He is losing.
It is a very clever move by India and all credit goes to Modiji. Both are trying their best to surpass the sanctions by US.
Israel and India are best friends.
@Babu
Please define world leader. If you mean one of the world leaders, it is already at no. 6 in terms of GDP.
Better yard stick is GDP per capita. If you mean no.1, probably never.
Best thing to happen for both India and Iran. Indian leadership is at his best.
@Babu, u mean when india was ruled by muslims during mughal era. Yes that was golden age of india.
The long lasting development of Asia is depend on connectivity among all countries e.g TAPI gas line, PAK-iran-china-India oil and gas line, Afghan transect route, pak-india,bangladesh route and many more. Friendship and trad with neighbours and region is only solution of all problems
@Pervez, because you will only bring corruption and low quality
@MANZOOR H JAFFERY, sure Manzoor doesn't matter who is PM India is unbeatable
@MANZOOR H JAFFERY, why don't you focus on the Modi stamp that Erdogan has brought in Turkey
@MANZOOR H JAFFERY, whatever keep you happy
World leaders, who deal with PM Modi, have found that dealing with PM Modi is always a win-win situation and never a zero-sum game.
@MANZOOR H JAFFERY - And you know that sitting in Pakistan? Be prepared for a rude awakening in May.
Big win for Indian diplomacy to get a waiver from the US to circumvent Iran sanctions & do business with Iran when the EU & other nations couldn't get.
Trade within Asia is the need of the hour expand it as much as possible.