The Bank of Kunlun which conducts most of China’s business transactions with Iran, is planning to stop its involvement with that country’s oil exports, in response to the pressure of US sanctions due on November 1, Reuters reported this week.
China is the largest buyer of Iranian crude oil—about $1.5 billion worth a month—mostly through the Bank of Kunlun. According to Reuters, Chinese refineries have already reduced their oil purchases from Iran in October.
There has been no official response from the bank, or from its parent organization, the China National Petroleum Corporation (CNPC), to the Reuters report.
Majid Reza Hariri, an official with the Iran-China Chamber of Commerce and Industries, denied the report, saying the Bank of Kunlun has not actually halted service to Iran’s oil exports, but rather has notified commercial account holders that in case they have an open letter of credit or unfinished payments, they should complete them by November 1.
Which is as far as one can go putting lipstick on this pig without actually confirming the report…
Iran’s Oil Minister Bijan Namdar Zanganeh played down President Trump’s attempts to “zero down Iran’s crude exports,” warning that the US sanctions will only inflame the market.
“Sustainable and stable supply of the crude needed by customers is a feature of Iran and no country has the capacity to replace Iran’s crude in the high-demanding global oil market,” Zanganeh said on Tuesday, stressing that “Inflammation of the global oil market will continue until oil sanctions against Iran will be removed.”
The currency exchange for one US dollar on Friday morning is 41,905.43 Iranian rial.