India’s largest-ever steel export deal, struck with Iran in 2014 to allow it to buy the metal without violating Western sanctions that are now set to end, has become mired in a dispute that has seen
India’s largest-ever steel export deal, struck with Iran in 2014 to allow it to buy the metal without violating Western sanctions that are now set to end, has become mired in a dispute that has seen no payments made or shipments delivered since last fall.
The impasse underlines how Tehran is taking a more assertive posture in its dealings with trading partners as options open up for business and it looks to strike better deals.
Iranian Gas Engineering & amp; Development Company (IGEDC) has written to Indian state-trader STC India Ltd. complaining that steel shipments have been irregular and far below terms set out in the $2.5 billion contract, according to a letter seen by Reuters.
It also said in the letter, dated late in December, that it would like to deal directly with Essar Steel India Ltd., which was supplying the steel to STC for export, if the state trader did not restart regular shipments soon.
“We strongly urge STC to either be more flexible to enable regular and faster shipments or allow the contract to be dealt directly between IGEDC and the manufacturer,” it wrote.
The complex arrangement was put in place to allow steel exports without violating sanctions that prevented private Indian companies from dealing directly with Iran.
