Iran’s investment finance contracts with European, Japanese and South Korean banks have been suspended, the director of loans at Islamic Republic’s Investment Organization has disclosed.

While China and Russia are still committed to their deals with Iran, European, Japanese and South Korean banks have practically halted their interaction with Iran, Saeid Khani Oushani has announced.

“Although, the banks have not declared their new decision publicly, but noted that resuming their suspended financial activity depends on negotiation with EU,” Khani Oushani said.

Meanwhile, Khani Oushani has admitted that Tehran and Beijing are investigating to find ways for continuing bank transactions and cooperation.

The first batch of US sanctions, targeting Tehran’s access to foreign financial services and facilities, came into effect last Tuesday. Joint Comprehensive Plan of Action (JCPOA) or Tehran nuclear deal with world powers, implemented in 2016, paved the way for signing tens of MoUs and draft contracts for foreign investments in the Islamic Republic; but, the renewal of the sanctions immediately plunged them into uncertainty.

The second batch of US sanctions scheduled for November 4, targeting Iran's oil export and its Central Bank’s international activities will complicate the situation further.

According to Khani Oushani, even before the implementation of the second batch US sanctions, “Many banks have already decided to completely stay away from interacting with their Iranian counterparts. They are searching for tactics to continue their cooperation with Iran, but, none has been operational, so far.”

Earlier in June, Saeid Khani Oushani had maintained that after inking JCPOA, Iran signed more than $23 billion contracts over foreign investments in the country.

However, Khani Oushani admitted that commitments on the financing of only two projects; constructing a thermal power station in Bandar Abbas and Garmsar-Inceboroun railway, have been fulfilled by the Russian side.

It was earlier disclosed that two South Korean banks had promised Iran a $13 billion credit line, while Japan had committed itself to invest $10 billion in railways projects in Iran.