Cargill, Bunge and other global traders have halted food supply deals with Iran because new US sanctions have paralysed banking systems required to secure payments, industry and Iranian government sources told Reuters. “There is no real chance of being paid using the existing mechanisms and many international traders are unable to do new business for the moment,” said one European source speaking under conditions of anonymity.
Western and Iranian trade sources said US groups, Cargill and Bunge, as well as Singapore’s Olam, were among those which could not conclude new export deals for wheat, corn, raw sugar or other commodities because Western banks would not process payments with Iran.
Economic sanctions re-introduced against Iran target everything from oil sales to shipping and financial activities and have deterred many foreign banks from all Iranian business. Many smaller banks that had dealt with Iran under a previous round of sanctions have also stopped dealings this time.