U.S Treasury reassures Brazil banks trade with Iran OK

​The U.S Treasury has reassured Brazilian banks they can finance trade with Iran without fear of sanctions.

Embraer E-195. Photo copyright: Embraer
This is opening the way to billions of dollars in potential exports of jet planes, buses and equipment, a seni

Rodrigo Azeredo, Brazil’s top diplomat for trade, has said: “Sanctions on non-U.S entities doing business with Iranian companies were lifted with implementation in January of nuclear accord with Iran, but Brazilian banks remained worried they could still face repercussions”

“They feared U.S. and European banks could react by cancelling their credit lines”

That is expected to change after Treasury officials explained to executives of Brazil’s larhest banks in São Paulo last week that they can deal with Iranian banks (in dollars or any other currency) don’t go through the U.S. banking system and do not involve blacklisted Iranian companies.

The assurances from the Treasury’s Office of Foreign Assets Control (OFAC) should remove a financial hurdle to Brazil’s plan to expand trade with Iran to $5 billion last year, the Brazilian foreign ministry official said.

Embraer still requires a U.S. licence for the sale to Iran of sensitive jet engine technology in its planes.

An Embraer spokesman said the company was hopeful it will get the go-ahead following similar licences granted recently to European planemaker Airbus to sell commercial planes to Iran.

Azeredo said Iranian companies were seeking Brazilian equipment ranging from tractors and electrical generators to hospital and dental equipment.

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