icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Switzerland & Iran developing payment channel to bypass US sanctions

Switzerland & Iran developing payment channel to bypass US sanctions
A special financial mechanism aimed at maintaining trade ties between Switzerland and Iran is ready for implementation, according to Sharif Nezam-Mafi, the head of the countries’ joint chamber of commerce.

He told IRNA news agency that the clearing house will be used to facilitate Iran’s oil transactions with its major Asian crude customers – namely India, China and South Korea.

“Currently, there is no money belonging to Iran in Europe. Most of Iran’s money is in India, China and South Korea which import Iranian crude,” said the head of the Iran-Switzerland Chamber of Commerce.

Also on rt.com Switzerland would join new interbank payment system independent of US

According to Nezam-Mafi, once Iranian oil money flows from Asia to Europe, the Swiss financial channel will start to work immediately. He said the Swiss government has already designated an operating bank, but has not yet formally announced its name.

READ MORE: Iran considers SWIFT payment system alternative to bypass US sanctions

Swiss ambassador to Tehran, Marcos Lightner, also told the news agency that the two sides are preparing an independent payment channel in addition to the Special Purpose Vehicle (SPV). He said that, although Switzerland is not a member of the European Union, it is steadfastly following the issue of the implementation of the SPV. European countries are trying to maintain the Iran nuclear deal, the diplomat emphasized.

Also on rt.com Iran considers SWIFT payment system alternative to bypass US sanctions

The Iran-Switzerland payment channel is designed to bypass US sanctions imposed on the Islamic Republic after Washington ditched the 2015 nuclear deal with Tehran last year.

The European Union is also working on a financial mechanism to ease non-dollar trade with Iran and circumvent US sanctions. It hopes the SPV announced in September will keep the nuclear deal alive. Tehran will be able to stay on board while foreign companies will be given a way of trading with the country without violating Washington’s sanctions.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts