Iran denies moving funds from Europe

TEHRAN (Reuters) - Iran's economy minister played down on Sunday reports Tehran was withdrawing assets from Europe in the face of tightening sanctions over its nuclear programme.

Hossein Samsami, acting economy minister, also said the sanctions were not having a major impact on the economy of the world's fourth-largest oil exporter.

Asked whether it was true that Iran was moving money from European banks, he told state radio, without giving details: "No, it is as yet not serious."

An Iranian weekly this month said Iran had withdrawn $75 billion (38 billion pounds) from Europe to prevent the assets from being blocked under threatened new sanctions over its disputed atomic plans.

The Shahrvand-e Emrooz weekly quoted Mohsen Talai, deputy foreign minister in charge of economic affairs, as saying that a part of Iran's assets in European banks had been converted to gold and shares and another part transferred to Asian banks.

The Etemad-e Melli newspaper had earlier carried a similar report without giving any figures.

Iran's refusal to halt sensitive nuclear work which the United States and others suspect is aimed at making bombs has drawn three rounds of United Nations sanctions since 2006.

Western powers have warned the Islamic Republic of further punitive measures if it rejects an offer of economic and other incentives and presses ahead with uranium enrichment, which can have both civilian and military uses.

Iran has ruled out halting activities which it says are solely aimed at generating electricity.

Analysts say Iran's windfall crude export earnings, which its oil minister estimates at $6 billion per month, are helping it cushion the sanctions impact even though Western firms are becoming more wary of investing in the country.

Asked about the impact of sanctions on Iran's economy, Samsami said: "With the measures adopted, the sanctions have not had a considerable impact on the country's economy."

European Union diplomats have said the bloc is preparing an asset and funds freeze on Iran's biggest bank, Bank Melli, but that it first wants to see how Tehran responds to the new incentives offer by world powers, presented on June 14.

The United States, Russia, China, Britain, France and Germany are offering Iran benefits including help in developing a civilian nuclear programme if it stops enriching uranium.

Iran says it will review the incentives package but that it will not suspend enrichment, which can provide fuel for power plants but also material for arms if refined much more.

In October, the United States imposed sanctions on Bank Mellat and other bodies, including part of Iran's military.

Bank Mellat has dismissed as "baseless" the U.S. charges, which included accusing it of providing banking services to support Iran's nuclear activities. Its head, Ali Divandari, last week said Iranian banks were not moving funds from Europe. (Reporting by Hashem Kalantari; Writing by Fredrik Dahl; Editing by Paul Bolding)