By ETHAN Markoff
SOUTH KOREA NEWS – Despite Iranian president Mahmoud Ahmadinejad fiery warnings, South Korea has enforced economic sanctions on 126 Iranian companies Wednesday. Earlier Iranian firebrand president warned that the sanctions would smash up the budding trade between two countries.
South Korea’s action has considerably hamstrung Bank Mellat’s Seoul office, which at presently looks after 70 percent export business to Iran. The office is the Iran second largest bank and only office in Asia. Earlier United States pointed a finger at the bank, blaming for the facilitation of millions of dollars in transaction for Iranian nuclear and defense programs.
After these sanctions, the bank needs permission from the Bank of Korea, the central bank for all financial deals. Moreover, South Korea is contemplating to shelve bank’s operation for indefinite period. The third country transaction to Iran through the bank will be suspended.
“The Seoul branch cannot operate normally any more,” said a senior Foreign Ministry official, who briefed reporters on condition of anonymity.
According to the sources, South Korea has been under a constant pressure from US to impose sanctions on Iran. On the other hand Seoul has the largest export market in Iran and it would be a tough decision for both countries.
The 10 percent of crude oil comes from Iran to South Korea and Iran warned that it will shun South Korean cars and electronics if South Korea aims Sanctions on Iranian companies.
In an official statement, Seoul declared that the ban on Iran echoes its own desire to stop North Korea growing nuclear obsession. Last month Washington imposed similar kinds of ban on North Korea and asked South Korea to join economic sanctions against Iran.
South Korea cleared that it will not stop oil import from Iran but shun all new investments both financial and technical. In addition, Iran will also devoid of all building contracts by South Korea.
The trade between two countries had grown to to $9.6 billion last year, up from $2.9 billion in 2001.
SOUTH KOREA NEWS – Despite Iranian president Mahmoud Ahmadinejad fiery warnings, South Korea has enforced economic sanctions on 126 Iranian companies Wednesday. Earlier Iranian firebrand president warned that the sanctions would smash up the budding trade between two countries.
South Korea’s action has considerably hamstrung Bank Mellat’s Seoul office, which at presently looks after 70 percent export business to Iran. The office is the Iran second largest bank and only office in Asia. Earlier United States pointed a finger at the bank, blaming for the facilitation of millions of dollars in transaction for Iranian nuclear and defense programs.
After these sanctions, the bank needs permission from the Bank of Korea, the central bank for all financial deals. Moreover, South Korea is contemplating to shelve bank’s operation for indefinite period. The third country transaction to Iran through the bank will be suspended.
“The Seoul branch cannot operate normally any more,” said a senior Foreign Ministry official, who briefed reporters on condition of anonymity.
According to the sources, South Korea has been under a constant pressure from US to impose sanctions on Iran. On the other hand Seoul has the largest export market in Iran and it would be a tough decision for both countries.
The 10 percent of crude oil comes from Iran to South Korea and Iran warned that it will shun South Korean cars and electronics if South Korea aims Sanctions on Iranian companies.
In an official statement, Seoul declared that the ban on Iran echoes its own desire to stop North Korea growing nuclear obsession. Last month Washington imposed similar kinds of ban on North Korea and asked South Korea to join economic sanctions against Iran.
South Korea cleared that it will not stop oil import from Iran but shun all new investments both financial and technical. In addition, Iran will also devoid of all building contracts by South Korea.
The trade between two countries had grown to to $9.6 billion last year, up from $2.9 billion in 2001.
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