John Kerry Assures European Bank Executives on Trade with Iran

John Kerry, the U.S. Secretary of State, assured executives from major European banks in London that the U.S. does not pose an obstacle for European banks in resuming trade relations with Iran. Reuters reported on Thursday, May 13, citing British officials, that Kerry made these remarks in front of about ten executives from the largest European banks, aiming to alleviate their concerns about potential negative reactions from the United States. Washington had previously imposed heavy fines on several European banks for allegedly violating Iran sanctions. However, following the nuclear agreement between Iran and world powers and the lifting of sanctions related to Tehran's nuclear program, the groundwork for resuming foreign banks' relations with Iran has been laid. In the meeting, Kerry stated regarding the nuclear agreement: 'We want to clarify that banks are entitled to engage in legal trade with Iran in accordance with the terms of the agreement.' The report mentions that Sajid Javid, the British Secretary of State for Business, and Lord Lamont, the Chairman of the Iran-UK Chamber of Commerce, were also present at the meeting. Iranian officials, including Ali Khamenei, the Supreme Leader, had previously accused the U.S. of scaring European companies and banks away from trading with Iran, thereby failing to adhere to their commitments under the nuclear agreement. However, Washington has repeatedly emphasized that it does not prevent foreign banks from operating and is working to end the 'confusion' among these banks through clarification. The foreign ministers of Iran and the United States also met earlier in May regarding this issue, after which both sides expressed hope that the banks' concerns would be addressed. Nevertheless, Deutsche Bank of Germany announced on the eve of the meeting with Kerry that 'some sanctions and restrictions from the European Union and the United States against Iran remain,' and for this reason, the bank still has considerations and limitations regarding trade with Iran. Reuters writes that Kerry described the purpose of the London meeting as being informed about the banks' concerns and working to alleviate them. In this context, Kerry aims to encourage European banks to cooperate with Iran, stating that 'the problem of trade with Iran is not solely due to U.S. sanctions.' India is paying Iran's oil debts through European banks. Kerry noted that the business sector uses sanctions as an excuse to refrain from trading with Iran.