Jul 25, 2011, 10.23 AM | Source: Reuters
Iran and China are discussing using a barter system to exchange Iranian oil for Chinese goods and services, as US sanctions have blocked China from paying at least $20 billion for oil.
The paper, citing people familiar with the problem, said US financial sanctions against Iran, which make it hard to conduct dollar-denominated business, meant China might owe the oil-rich country as much as $30 billion.
The people said the unpaid oil bills had built up in the past two years and the governments, which are in early-stage talks, were looking at how to "offset" the debt, the FT reported.
The paper said some Iranian officials were growing increasingly angry about the inability of the country's biggest oil customers such as China and India to pay cash, which has contributed to a shortage of hard currency for the country.
"Both China and India are happy to keep Iran's money in their banks and try to get Iran involved in barter deals to sell their junk, or given yuan and rupees instead of hard currencies," the FT quoted one Iranian former official who chose to remain anonymous as saying.
It said the official added that Iran had not yet accepted the alternatives.
Why US tech giants are buying British AI start-ups
Microsoft announced that it had acquired London-ba
Iran to charge in euros for new oil sales and old dues: Sources
A source at state-owned National Iranian Oil Co (N
US, India in talks to settle solar power trade dispute
Washington filed the WTO challenge three years ago
Proposed oil tax can be a good thing for US economy: Obama
"We're going to impose a tax on a barrel of oil im
Industrialists attend 'Make in India Week' seminar in US
The Illinois Chief Information Officer Hardik Bhat
India is our largest market outside US: Domino's Pizza's Boss
J Patrick Doyle, President and CEO, Domino's Pizza