<%@LANGUAGE="VBSCRIPT" CODEPAGE="1252"%> WorldTribune.com: Mobile — Iran credits Gulf state banks for helping foil U.S. sanctions
Iran credits Gulf state banks for helping foil U.S. sanctions

Monday, February 11, 2008 Free Headline Alerts

ABU DHABI — Iran has reported asssistance from Gulf Arab states in shielding Teheran's banking system, which have been targeted by the United States.

Iranian Central Bank Gov. Tahmasb Mazaheri said at least two Gulf Cooperation Council states were assisting Iran's banking system to thwart U.S. sanctions. In an address on Feb. 5, Mazaheri cited Bahrain and the United Arab Emirates.

In January 2008, Iranian financiers acknowledged new regulations that prevented UAE banks from financing trade with Teheran, Middle East Newsline reported. The financiers reported similar restrictions in Bahrain.

In 2007, the Bush administration warned the UAE to stop helping Iran's banking and trade system. The administration said Dubai has served as a port for the transfer of dual-use equipment that could be used in Iran's weapons of mass destruction programs.

"Particularly in the region, Bahrain and the [United Arab] Emirates and other neighbors all around Iran's borders, we have a lot of partners who are working with us in the long term," Mazaheri said.

This was the first time Teheran has cited Gulf Arab allies of the United States as facilitators of Iran's banking system. In 2007, the United States imposed sanctions on leading Iranian banks deemed to have helped Teheran's nuclear and missile programs.

But in an address to the Reuters Islamic Finance Summit in Manama, Mazaheri said GCC and other regional states were foiling U.S. efforts. He said Bahrain and the UAE would not sever their political and economic ties to Iran despite U.S. pressure.

"Neither us nor our neighbors will sacrifice our long-term interests because of the unilateral pressures," Mazaheri said.

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