Belgian Financial Group KBC Also Limits Banking Transactions with Iran

The Belgian financial group KBC announced on Thursday, June 7, that under the influence of the U.S. decision to resume sanctions against Iran, it will henceforth limit banking transactions with Tehran to humanitarian cases. This is the latest instance of the cessation or limitation of European companies' activities in Iran. Following the U.S. withdrawal from the JCPOA on May 8 of this year and the resumption of sanctions against Iran in early November, several European companies and financial institutions have announced that they will terminate their activities in Iran before this deadline. The cessation or limitation of activities of banks, insurance companies, maritime transport, and European oil companies in Iran has made it more difficult for European countries to maintain the JCPOA. The KBC financial group stated, "Immediately after the U.S. decision to withdraw from the JCPOA, we decided to limit our activities in Iran to humanitarian cases that comply with the U.S. Treasury Department's sanctions regulations." "According to this policy, even after November 4, our clients can continue these types of banking transfers." The financial group said that ongoing cases can only continue until the specified deadline. In another part of this statement, it is mentioned: "KBC has never invested in any transaction with Iran and has only conducted banking transfers for its clients, adhering to all regulations of the European Union, the U.S. Treasury Department, and other conditions." The KBC financial group added that in 2016, after the lifting of sanctions against Iran, it decided to conduct financial and insurance operations for its reliable clients in Belgium, the Czech Republic, Slovakia, and Hungary "in legitimate trade with Iran." Last week, the Swiss bank BCP announced that it had halted all banking transactions with Iran and limited its activities in that country. According to financial experts, this decision was a significant blow to Iran. DZ Bank, Germany's second-largest bank, also recently announced that it would stop transactions with Iran in July. Sanctions experts say that transactions related to humanitarian cases with Iran, including the trade of food and medicine, were not prohibited even before 2016, but the U.S. sanctions regime and the prohibition of using the dollar created difficulties that slowed down even these types of transactions significantly. According to a Reuters report, the Swiss bank has halted financial transactions with Iran. A large Indian company has stopped importing oil from Iran. South Korea's Daelim has canceled a two billion dollar contract with Iran. The CEO of Total stated that the likelihood of exemption from U.S. sanctions against Iran is very low. The European investment bank has opposed the EU's plan for activities in Iran. Europe has made a formal request to the U.S. for exemptions for companies active in Iran. European refineries have reduced their oil purchases from Iran. Boeing has not delivered any aircraft to Iran. American officials have traveled to various countries "to pressure Iran." Peugeot is also leaving Iran. Trump had requested Saudi oil support before exiting the JCPOA.