Iran denies shifting assets for fear of sanctions

LONDON, January 20 (IranMania) - Iran denied reports that it was moving billions of dollars in hard currency from European banks to Asia and said Europe had no right to freeze its assets, said AFP.

Economy Minister Davoud Danesh-Jafari dismissed a report in pan-Arab newspaper Asharq al-Awsat that Iran had ordered government departments to withdraw currency from European banks, fearing possible sanctions over its disputed nuclear programme.

Danesh-Jafari described the news report as "politicised" and "media-driven."

"International law does not allow Europeans to do such a thing (freeze assets)," Danesh-Jafari said.

"Should they do it, it would be contrary to their interests because oil-producing countries... and other countries would become anxious and would transfer their financial reserves to more secure locations," he added.

The London-based Arabic newspaper had quoted an unnamed Iranian central bank source as saying Iran had decided not to allow the Europeans the chance to freeze its bank accounts in case of a political or military confrontation over its nuclear ambitions.

"A number of Iranian regime-linked figures have already withdrawn their private capital from European banks and deposited it in private banks in Hong Kong, as well as Dubai, Beirut, Singapore and Malaysia, over fears of account freezing," the source said.

"The size of these deposits amounts to eight billion dollars -- a quarter of Iran's hard-currency deposits," the source said, adding that the step did not involve Swiss banks.

However, Iran's Central Bank chief Ebrahim Sheibani denied "the freezing of Iran's hard-currency accounts in European banks," according to the official IRNA news agency.

Asked Wednesday about the possible freezing of Iranian assets, he said: "We will do all that is necessary."

He also joked: "Sleep easy. We are awake."

The international crisis over Iran's nuclear programme escalated when the Islamic republic resumed sensitive uranium enrichment research on January 10, despite calls by European negotiators to maintain a halt to such activities.

London, Paris and Berlin called an emergency meeting of the International Atomic Energy Agency for February 2, as Western countries aim to gather support for referring Iran to the UN Security Council for possible sanctions.

But some European officials have said such a move would not necessarily lead to economic sanctions.

Iran insists its nuclear programme is peaceful but the United States suspects it is a cover for weapons-building.

Iran is the second leading oil-producing in country in the Organisation of Petroleum Exporting Countries, and generated 42 billion dollars in oil revenue in 2005.

Iranian hard currency reserves in foreign banks, mainly European banks, are valued at more than 36 billion dollars.