Turkey sees no clash with US over Iran 'gold for gas'

By REUTERS
November 29, 2012 13:54
1 minute read.

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

ISTANBUL - Turkey's energy minister said on Thursday that he sees no conflict between Ankara and Washington over US plans to widen trade sanctions against Iran, including Turkish-Iranian "gold for gas" trade.

US senators and aides told Reuters this week that new sanctions aimed at reducing global trade with Iran in the energy, shipping and metals sectors may soon be considered by the US Senate as part of an annual defense policy bill.

One senior aide said the move would end "Turkey's game of gold for natural gas," referring to Iran's conversion of Turkish payments for gas into gold because of the sanctions.

Iran sells oil and gas to Turkey, with payments made to Iranian state institutions. US and European banking sanctions ban payments in US dollars or euros, so Iran is paid in Turkish lira - of limited value for buying goods on international markets, but ideal for buying gold in Turkey.

Couriers carrying millions of dollars worth of gold bullion in their luggage have been flying from Istanbul to Dubai, where the gold is shipped to Iran, industry sources with knowledge of the business told Reuters last month.

Official Turkish trade data suggests that nearly $2 billion in gold was sent to Dubai on behalf of Iranian buyers in August. The shipments help Tehran to manage its finances in the face of Western financial sanctions. By using physical gold, Iran can continue to move its wealth across borders.

Related Content

Breaking news
July 23, 2018
Pompeo compares Iran's leaders to "mafia"

By REUTERS