Western banks cold-shoulder Iran trade finance scheme

LONDON/ANKARA (Reuters) - Despite a diplomatic thaw, Western banks are steering clear of attempts by Iran to get them involved in financing humanitarian transactions, fearing they could be penalised under U.S. sanctions, bankers and government officials told Reuters.

Iran was never barred from buying food or other humanitarian goods under sanctions imposed because of its disputed nuclear programme, but measures by the European Union and the United States have made trade generally more difficult over the past two years by hindering payments and shipping.