Iran is rebuilding its economy following a historic nuclear agreement with world powers which resulted in removal of all sanctions imposed by the US, European Union and the United Nations.
The lifting of sanctions has created golden opportunities for Iran and its economic allies to restore their trade and political relations which benefit both sides.
Just one day after President Hassan Rouhani concluded several multibillion-dollar trade deals with Italy and France, Singapore scrapped its prohibition on transactions with Iran, the latest outcome of the entry into force of Tehran’s nuclear agreement reached earlier this month.
The Monetary Authority of Singapore said the decision to lift the ban on business with Iran took effect on January 28.
The ban was slapped on Iran in a politically motivated move on June 2012 after the Western governments toughened sanctions against the Islamic Republic over its peaceful nuclear program.
“The prohibition had applied to all financial institutions and individuals, as defined in section 27A(6) read with section 27A(7) of the MAS Act, from doing business with the Iranian government, its central bank, any financial institution in Iran and a branch or subsidiary,” Platts weekly said.
The ban had stopped financial institutions in Singapore from “directly or indirectly entering into, continue to participate in, arrange or facilitate the entering into or continued participation in, or any transaction or business relationships” with Iran. Before Singapore imposed sanctions on Iran, it imported 362,448 million tons (mt) of fuel oil from Iran in the week leading to February 9, 2011.