DAILY BASKET – NEWS COMMENTARY
Iran and Russia Developing Barter Trade
MARSAL COMMENTS: Russia and Iran announced an “Oil-For-Goods” deal, where Iran sells Russia around 100,000 barrels of oil per day and gets paid in goods such as construction, railroad and airport equipment, etc.
The deal stipulates 50% of trade settled in cash and the balance in barter goods, and is claimed to have a potential to grow to US$ 45 Billion per year!
NEGATIVE FOR: for the US Dollar as it is being sidelined in this trade transaction.
POSITIVE FOR: Russia and Iran as it increases their foreign trade as well as reduces the impact of the American and European sanctions placed upon them.
IMPACT POTENTIAL: Medium to High
TIME SCOPE: Short to Medium Term