Four people familiar with the situation told Reuters that the Bank of Kunlun, an important channel for China's trade with Iran, would stop processing payments from Iran under pressure from the United States to impose sanctions on Iran.
The Bank of Kunlun is the main formal channel for capital flows between China and Iran. Sources said the bank had verbally informed customers that it would stop accepting Iranian payments to China in Renminbi from November 1. The sources include foreign loan agents and business executives who have business dealings with Iran. Because of the sensitive nature of the event, the source refused to be named.
Kunlun Bank is controlled by China National Petroleum Corporation (CNPC). Four sources said the bank had quietly suspended Euro Payments from Iran at the end of August.
The Bank of Kunlun did not reply to an email seeking comment. A spokesman for CNPC did not comment.
It is unclear how long the suspension will last and how Chinese companies that are still selling goods or services to Iran can receive payments; it is unclear whether the bank's settlement of Iranian oil purchases for China will be affected.
China is the largest buyer of oil in Iran. Almost all oil purchases are paid through the Bank of Kunlun. China buys about $1 billion 500 million worth of oil from Iran every month until September. But oil industry sources say state-owned refineries have been cutting crude oil purchases from Iran since October to comply with U.S. sanctions against Iran.

<>Kunlun Bank of China will stop accepting payment business in Iran

 

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