Europe to Ditch US Dollar in Payments for Iranian Oil: Source

TEHRAN (Tasnim) – The European Union is planning to switch payments to the euro for its oil purchases from Iran, eliminating US dollar transactions, a diplomatic source said.

Europe to Ditch US Dollar in Payments for Iranian Oil: Source

“I’m privy to the information that the EU is going to shift from dollar to euro to pay for crude from Iran,” the source told RIA Novosti.

Earlier this week, EU Foreign Policy Chief Federica Mogherini said that the foreign ministers of the UK, France, Germany, and Iran had agreed to work out practical solutions in response to Washington’s move in the next few weeks.

The bloc is planning to maintain and deepen economic ties with Iran, including in the area of oil and gas supplies, she said.

Mogherini stressed that the sides should jointly work on the lifting of sanctions as an integral part of the historic nuclear deal between Tehran and world powers. “We're not naive and know it will be difficult for all sides.”

The Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), was sealed three years ago in Vienna between Tehran and group 5+1 (China, France, Russia, Britain, US, and Germany).

US President Donald Trump, however, pulled his country out of the accord earlier this month and reimposed anti-Iran sanctions that had been lifted after coming into force of the JCPOA.

Iran exports about 450,000 barrels per day (bpd) of crude oil to Europe and around 1.8 million bpd to Asia. The country has boosted its oil production nearly 1 million bpd since the nuclear deal lifted Western sanctions in January 2016.

US Treasury Department has instructed countries to make significant cuts to their imports over the next six months to be considered for potential sanctions relief. The US government has said the sanctions on Iran will go back into force from November 5.

Iran's main oil clients in Europe are Italy, France, Greece, Spain, Poland and Turkey. Turkey is the biggest importer with 250,000 bpd, followed by Greece at 120,000 bpd and France between 70,000-100,000 bpd.

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