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World

Kerry soothes EU banks over Iran trade

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World

Kerry soothes EU banks over Iran trade

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COMING UP:Kerry soothes EU banks over Iran trade

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00:00:01
>> A pit stop in London to try and soothe some nerves. U.S. Secretary of State John Kerry telling Europe's leading banks on Thursday that it's safe to pick up business again with Iran. Trade sanctions were lifted in January on a deal to curb Iran's nuclear activities. But banks are nervous, particularly as rival US presidential candidates fight for a seat in the Oval Office.
00:00:23
>> That's a loose canon.>> Kerry's advice, make proper checks on trade partners, and ensure legitimate business. The Breaking View's Andy Critchlow says banks are likely to remain wary.>> Banks are nervous about going back into Iran because essentially the sanctions that do remain in place are ambiguous.
00:00:43
In Iran, the Revolutionary Guard which has deep economic ties throughout the country, they're on the US prohibited list. So banks are very nervous that they are caught out by these secondary sanctions as we would say, which could have a dramatic impact on them if they were fined.>> In Iran businesses are not happy, fearing the deal has so far over promised and under delivered.
00:01:09
And it's also being felt right at the top of the Iranian establishment. New people aren't lending to the country. People aren't supporting trade deals and certainly when they're talking to counterparts, either it's western energy companies, whether it's Western institutions that are wanting to trade with Iran, repeatedly, the message they're getting is, we wanna do business with you, but we can't because we can't get the banks to issue us a letter of credit, or we can't get the banks to fund what we wanna do.
00:01:38
And so that's filtered through to the Iranian government, and they're quite annoyed about this. Could this mean at the end of the year if nothing changes that the new PA deal that was agreed, ratified in January breaks down, I think it's entirely possible, yes.>> Some banks may not be fully convinced until after the US elections in November.
00:01:58
But many worry that Iran still has a very much intact nuclear program, and could back track if it's dissatisfied with its side of the deal.