(Persia Digest) - The deputy chairman of the Iran-China Chamber of Commerce has said: “The Kunlun Bank of China was instructed to halt its work with Iran.”
Commenting on the cooperation of Kunlun Bank with Iran, Ferial Mostofi said: “The Kunlun Bank is itself under sanction although more than 70 percent of its shares belong to the Chinese oil company and 60 percent of its activities are based on the dollar. This is why it was instructed not to work with Iran anymore.”
She added: “The last cooperation of the Kunlun Bank with Iran will be to continue and accomplish all transactions it has made with the Iran until October 30. If there is an LC which had been open by another under-sanction bank, Kunlun will not finance it and it should be changed.”
“Kunlun is also to stop all its steel and petrochemical projects and will only continue its work with Iran on humanitarian issues including food and medication,” she said.
Commenting on Europe’s Special Purpose Vehicle (SPV) for working with Iran, Mostofi said: “It should be explicitly said that nothing will happen with the SPV and it means nothing. No country in Europe has so far accepted to host the SPV and no European country knows how the SPV mechanism must be implemented. Therefore, all major European companies have realized that they cannot work with Iran based on the SPV and it means that SPV is nothing!”
Click here for more economic news.