Germany’s Spiegel reports today that German Chancellor Angela Merkel is moving to end the Bundesbank’s involvement in India’s oil payments to Iran. As we had reported on Friday, the German central bank had agreed to act as the conduit for the transfer of oil payments from the Reserve Bank of India (RBI) to Hamburg-based Europäisch-Iranische Handelsbank or EIH bank, which is controlled by Iran. If the Bundesbank in fact ends its involvement in the deal, India’s import of Iranian oil valued at over $12 billion annually will be in jeopardy.
Last December, RBI stopped using the Asian Clearing Union to settle India’s payments to Iran for the Union's non-adherence to US and European sanctions against Iran. For the past three months, India was importing Iran’s crude oil on credit. On 3 March, RBI finally resumed its payments through the Bundesbank to Iran's account at EIH bank.
On Tuesday, the German financial newspaper Handelsblat had first reported the possibility that Chancellor Angela Merkel would stop the Bundesbank’s involvement in the deals. Sources cited by Handelsblatt have now told Speigel that the Bundesbank would process payments for oil deliveries that have already taken place, but would not permit further deals in the future.
The end of Budesbank’s involvement would be a serious setback for the Iranian government and the Iranian oil industry, and a major victory for US attempt in strengthening financial sanctions against Iran.
Our bombs will someday find the mark!
ReplyDelete"The end of Budesbank’s involvement would be a serious setback for the Iranian government and the Iranian oil industry, and a major victory for US attempt in strengthening financial sanctions against Iran. "
ReplyDeleteI predict that somehow India will find a way to pay for the oil it imports from Iran. With various factors, including demand keeping oil at over $100 dpb the ball is firmly in Iran's court. India's economy is expanding, no other country apart from Iran has the capacity to supply it.
Unless japan snaps it up of course. At the end of the day it's a sellers market.
Germany will be on the losing side as US/UK destabilization in the region has already pushed oil over $108 a barrel. Despite the largely ineffective sanctions Siemans alone is doing over a billion Euros worth of trade with Iran in existing contracts for locomotives and turbines.
ReplyDeleteThese idiotic sanctions have only hurt US and UK companies as Iran has many options via Asian trade and banking. As long as the world economy runs on oil, Iran will be in the dominant position to dictate the terms of trade and investment. Even US reports indicate that with growing unrest in Saudi Arabian gas pump, oil is headed towards $200 in the near term or more. The only losers are the European and US consumers who have to pay for their pathetic Zionist controlled government's inept policies. UK's bankrupt consumers are paying close to $8 a gallon and US is averaging $4 and it is just the beginning.
The moronic US policies have led to rapid rise in oil and natural resource prices as OPEC earned over a TRILLION dollars from oil alone last year. This is one of the largest transfers of wealth from stressed OECD economies to energy exporting nations. India and China have very rapidly rising consumption and will be more dependent on OIL. The Fraco-UK grab for Libyan oil is no coincidence or a yearning for "freedom" by Libyan puppets armed by the US/UK and France and NATO bombing the Arabs for OIL.
Predictions:
ReplyDeleteIran will decide to accept payment in Indian rupees. German banks will miss out on handling fees, and lose goodwill in their other dealings with Iran. Another $12b bite will be taken out of the oil-backed Rothschild/Euro/$US world banking system, and the US$ will decline a little further and faster. Full membership of the SCO will be more attractive to both Iran and India.
Israel and the US media will call for nuclear strikes on Iran because "the sanctions aren't working".