February 17, 2012

Iran seeks Russian grain imports

Iranian traders are in talks with Russian sellers over grain imports to evade western banking sanctions imposed on the country, trade sources said Thursday (Feb 16).

Sources said any deals were likely to be done in roubles to avoid EU and US currency restrictions which were covered by sanctions over Iran's disputed nuclear programme.

"Talks are underway between Iranian importers and Russian exporters about supplying corn and wheat with the letter of credit denominated in roubles. The rouble denomination would make international bank payments possible despite the sanctions," one European trader said.

Iranian buyers are also in talks over importing corn via Iraq, avoiding payment restrictions by supplying to a third party for onward delivery, traders added.