Iran has been planning to start trading petroleum products on its own bourse located on the island of Kish. After repeated delays, Iran announces it will open imminently. It will not accept payments in US dollars. Iran has also recently persuaded Turkmenistan a former Russian state to begin accepting payments for natural gas in Euros instead of dollars.
On February 13, 2008, Iran’s Oil Minister Gholam-Hossein Nozari said the long-awaited Iranian Oil Bourse will be inaugurated next Sunday. The inauguration ceremony of the bourse will be attended by Minister of Economic Affairs and Finance Davoud Danesh Ja’fari, who will appoint the head of the Iranian Oil Bourse. Ja’fari earlier stated that the Oil Bourse will be located on the Persian Gulf island of Kish and the official trade currency will be the Iranian rial. The bourse will act as a trading platform for oil, petrochemical and gas products.
Experts say the success of an oil bourse would largely depend on cooperation with other OPEC members as well as a much-needed consensus from Persian Gulf states. Iran’s annual revenue from oil will be $63 Billion (USD) as of the end of its fiscal year on March 20, 2008. Iran halted all of its oil deals in dollars in December 2007.
On February 12, the head of Iran’s National Gas Company said Tehran and Ashgabat will soon finalize an agreement to pay for future gas deals in euros. Reza Kasaizadeh said Iran had earlier called for a switch from dollar to euro in its payments for imported gas from Turkmenistan, adding, “They were not initially interested, but they finally agreed.” He said a draft agreement has been prepared in this regard which will soon be signed by the two countries.