Iran and South Korea have agreed a suitable payment mechanism for Iranian oil exports to South Korea, the head of the Iran-South Korea Joint Chamber of Commerce announced Saturday.
The Islamic Republic News Agency (IRNA) reported Hossein Tanhaee, head of the Iran-South Korea Chamber of Commerce explaining that the cost of goods to be supplied to Iranian importers will be subtracted from the cost of oil exports to South Korea and these importers will pay the price of the goods to the Iranian government.
'If the central banks of the both countries are unable to make transactions, the private sectors can barter within the framework of a joint fund,' Tanhaee said.
U.S. President Donald Trump re-imposed sanctions targeting Iran's energy, shipbuilding, shipping, and financial sectors. The sanctions also targeted Iran's oil sales from Nov. 5, in order to hurt the country's economy and bring Tehran back to the negotiating table to discuss its nuclear arsenal.
Iran, due to sanctions, is also losing its oil market share.
The Trump administration granted waivers to eight countries including China, India, South Korea, Turkey, Italy, the U.A.E. Japan and Taiwan -- the top importers of Iran's oil.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr