Iran does $9 million barter with Pakistan on power, wheat

Iran agreed with Pakistan to import wheat valued at $9 million from its eastern neighbor in exchange for electricity it exported, Iranian Deputy Energy Minister Mohammad Behzad said.

Iran supplied electricity valued at $51 million in total to Pakistan for which the Persian Gulf country hasn’t been able to secure payment, according to the state-run Mehr news agency Mehr, as international sanctions restrict its financial transactions. The prohibitions are designed to curb Iran’s disputed nuclear program.

“We agreed on barter of goods in exchange for electricity supplies,” Mehr cited Behzad as saying. Iran’s Ministry of Industry, Mines and Trade decided on the nature of goods to be received, he said. The two nations agreed for Pakistan to provide rice as well as the wheat, according to Mehr.

A new set of U.S. sanctions came into force in February designed to restrict buyers of Iranian oil to making payments in local currencies rather than dollars or euros, with the funds kept in escrow accounts that Iran can use only to buy locally sourced goods and services.

By Bloomberg


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