Iran refused to sell oil for dollars

Iran will be billed in euros on newly signed contracts on oil supplies, Reuters reports citing an informed source at the National Iranian oil company (NIOC). According to him, the agreements with the French company Total, the Spanish Corporation Cepsa petrochemical and trading unit of LUKOIL — Litasco.

“In our invoices we will include a clause stating that the buyers of our oil have to pay in euros given the exchange rate of the dollar at the time of delivery”, — said the Agency interlocutor.

Reuters notes that LUKOIL and Total declined to comment, and Cepsa had not responded to a request for comment.

Iran has also told its partners that it wants to receive the due arrears in the billions of dollars in European and not in us currency, the source added to Reuters.

The interlocutor of the Agency said that when the country was under sanctions, the Central Bank of Iran has decided to hold foreign payments in euros. The source explained that the rejection of the dollar is dictated by political reasons.

Iran had previously resolved to use a part of assets frozen as a result of us sanctions. It was about the funds that were denominated not in dollars but in other currencies such as the Rial Omani and UAE dirham, reminds Reuters. The total sum of frozen assets of Washington estimates at $100 billion (€89,2 billion), of which Tehran after the lifting of sanctions could gain access to around half.

The Agency notes that it is unclear what portion of these assets is in arrears of payments of oil, which Iran wants to get in Euro. In particular, the size of the debt of India is approximately $6 billion.

Iran has for many years advocated that the Euro was used instead of the dollar in international payments in the trading of oil, writes Reuters. In 2007, Tehran unsuccessfully tried to convince the partners in OPEC to abandon the dollar, the then President of Iran Mahmoud Ahmadinejad called a “worthless piece of paper”.