Iran hails oil-for-goods deal with South Korea

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On Saturday Iran said it had finalized a contract with South Korea to trade oil for goods, skirting renewed US sanctions.

“A mechanism has been devised for returning oil export revenues from South Korea, by which Iran’s oil export revenue will be bartered with imported goods, the head of the Iran-South Korea chamber of commerce, told by Hossein Tanhayi to state news agency IRNA.

“A crippling oil embargo on Iran last month following its withdrawal in May from a landmark 2015 nuclear deal,” individually reimposed by Washington.

South Korea — a close political ally of the United States — has cut Iranian oil consumption to zero from an estimated 285,000 barrels per day in the first six months of the year, according to Bloomberg figures.

The permissions also target Iran’s banking sector and its ability to bring dollars into the country, but leave open the opportunity of trade in goods.

Hossein Tanhayi did not give facts of the mechanism, but said a “joint fund” could be opened between their respective central banks.

South Korea is third largest trade partner of Iran after China and the United Arab Emirates.

The Mutual trade has dropped from $12 billion in 2017 to $5.7 billion for the first 10 months of 2018, according to the chamber of commerce.

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