Mining News Pro - Iran, one of the largest steel producer in MENA region is likely to face US sanctions, due to which many of the nations who are supporting US sanctions are stepping back to trade with Iran. Recently Japanese bank have stopped handling all Iran-related transactions to meet a November deadline set by the United States. Against all the odds, India agreed to open a branch of Iranian Bank in Mumbai.

Recently, Indian Finance Ministry has approved a proposal from Iranian private lender Bank Pasargad to open a branch in Mumbai, India. The clearance to the Iranian bank comes amidst the US sanctions and asking other countries to stop trade with Iran.
Iranian steelmakers are also excited with this new banking relationship, all this times transaction between the two nations were not smooth which was hindering direct trade of raw materials and semi-finished steel with each other.

During a recent interview with Mr. Keyvan Jafari Tehrani, Owner and CEO of JTC Iran, SteelMint learned that “Bank Pasargad, the largest private bank in Iran is opening in Mumbai to do the trade business of oil in INR and IRR. However, if the trade between India and Iran starts in INR and IRR then it will be beneficial for other business as well including steel trade. Previously one Indian bank was trading with Iran during the previous sanction, but it was restricted to only oil trade, but this time there is fair chance to transaction happening for non-oil trade also."

The Federation of Indian Export Organisations had earlier approached the RBI suggesting that they should allow the entry of Iranian banks into India to facilitate bilateral trade. India is one of the largest exporter of ferro alloys to Iran, during CY’17, India export around 30,000 MT Ferro Mn to Iran. With this new Iranian bank opening in India, there is a possibility of further increase in export.

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