The head of Iran-China Chamber of Commerce Asadollah Askaroladi announced that Chinese banks have stopped dealing with Iranian companies ahead of US sanctions scheduled to enter force next week.
Iran’s Tasnim news agency reported Askaroladi as saying that “all Chinese banks are no longer working with Iranian businessmen because of the US sanctions”.
“The banking transactions of Iranian exporters with China have been suspended,” he added.
The US imposed a first round of sanctions against Iran in August after unilaterally withdrawing from the internationally backed nuclear deal in May this year. More sanctions are due to be imposed on the Gulf state on Sunday.
Today Bloomberg reported that the US government has agreed to let eight countries, including India, to keep buying Iranian oil after sanctions come in to play.
Middle East Monitor
With U.S. sanctions looming, China loosens trade ties with Iran
On Nov. 4, the U.S. will re-impose sanctions on Iran that had been lifted under the Iran nuclear deal. In response, the Bank of Kunlun, which handles China’s financial transactions with Iran, informed customers that on Nov. 1 it will stop processing them. China’s largest oil refiners, Sinopec and China National Petroleum Corporation (CNPC), may also stop importing Iranian oil in November.
Why it matters: China is Iran’s largest oil importer and most important trading partner. Because China is better insulated from U.S. sanctions than other major importers, Iran could avoid the worst economic effects of U.S. sanctions if China continues buying its oil. But if China cuts back, Iran will likely pull out of the nuclear deal, leaving it free to resume an unrestricted nuclear program.