China buys Iranian crude with yuanMay 8, 2012 - 16:56 AMT PanARMENIAN.Net - China is buying crude oil from Iran using its currency the yuan, an Iranian diplomat has said, according to BBC News. Oil transactions are usually settled in dollars but U.S. sanctions make it difficult for Iran to accept payments in the U.S. currency. Iran is using the revenue to buy goods and services from China, Mohammed Reza Fayyad, Iran's ambassador to the United Arab Emirates, confirmed. The Iranian ambassador's comments, reported by the Reuters news agency, confirmed a report in the Financial Times that claimed that Unipec - a subsidiary of the Chinese state-owned oil firm Sinopec - was buying the oil through a trading unit called Zhuhai Zhenrong. Meanwhile, China has been trying to promote usage of yuan as an international currency as a rival to the dollar, including the establishment of a new offshore trading centre in London alongside the existing centre in Hong Kong. The U.S. plans to implement a round of sanctions, starting on 28 June, against banks based in countries that do not cut their oil imports from Iran. The U.S. and its western partners suspect Iran of using its nuclear programme to develop the capacity to make atomic weapons. Tehran says the programme is solely for civilian purposes. The U.S. has already said it will not apply sanctions to banks in Japan and 10 EU countries, after they all agreed to cut their imports from Iran. China, India and South Korea, now find themselves at the centre of current U.S. lobbying efforts. China has already cut its imports from Iran by half in the first three months of this year, although this was mainly in order to negotiate better trading terms with Tehran. It is unclear whether the cuts will be continued into the rest of the year. China is highly dependent on crude oil imports, and petrol prices in China have been rising sharply this year. Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. Aram I supports Karekin II’s “patriotic position” Catholicos of the Great House of Cilicia Aram I has expressed support for the Mother See of Holy Etchmiadzin. |