Iran's semi-official Fars News Agency (FNA) reported that the sanctions imposed by several nations aim to make it very difficult for banks worldwide to participate in L/C transactions with Iran.

L/C terms

At the same time as Qobadi is said to have told FNA about the wheat imports, the minister is also said by the news agency to have dismissed western media reports that Iran barters wheat for oil.

The FNA, which is believed by some to be linked to the Iranian government, says the minister stressed that all of the wheat purchases were transacted on L/C terms. It has reported an Iranian government minister claiming that Iran is still using letters of credit (L/Cs) to import wheat from seven unnamed countries.

The news agency reported that deputy minister of industry, mines and trade, Abbas Qobadi, was downplaying the effects of the western sanctions on Iran's financial sector.

Food security

The minister also told the news agency that Iran has stored large volumes of nine strategic goods, including foodstuffs, according to the FNA report.

It said that this store would be sufficient enough to meet national demand for one and a half years.

Indian trade

Iran has reportedly appeared keen to boost trade with India, particularly in food products, and is negotiating for bilateral payment arrangements for such trade.

The FNA report suggests that negotiations for banking facilities for wheat transactions have been held with UCO Bank in India.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.