Trade Resources Economy Western Sanctions on Iran's Shipping and Energy Sectors Caused Serious Problems

Western Sanctions on Iran's Shipping and Energy Sectors Caused Serious Problems

Reuters cited Mr Rostam Qasemi Oil Minister as saying that western sanctions on Iran's shipping and energy sectors caused serious problems for its oil industry earlier this year but Iran has mostly overcome those challenges.

 

Iranian officials usually play down the impact of US and European restrictions on the country's oil industry,but Mr Qasemi said that Iran had faced some difficulties selling its oil this summer.

 

Mr Qasemi said that"In the month of Tir there were difficult conditions for the oil industry.One of the problems was the issue of transporting oil it was not possible for any ship to enter our ports."

 

He said that"On top of this,the insurance for ships carrying crude oil was taken away and the import of many goods used in the development of the oil industry was banned."

 

Mr Mohammad Reza Bahonar deputy speaker of Iran's parliament said that sales dropped sharply to about 800,000 barrels per day in the June 21st to July 21st period but recovered afterward.

 

The International Energy Agency said that Iran's crude shipments fell to multi year lows of 1.07 million barrel per day in September but rose to 1.3 million in November,remaining well below about 2.3 million barrel per day to 2.4 million barrel per day last year.

 

The European Union imposed sanctions in July against Iran's oil and shipping industries which barred Europe based insurers from covering tankers that carry Iranian oil.

 

The tough measures reflect heightened concerns over Iran's nuclear program,which Western countries fear is aimed at developing an atomic bomb though Iran insists the program is peaceful.

 

Mr Qasemi said that Iran had managed to find ways to rout the sanctions.Following on the imposition of these sanctions,for two months we had bad conditions.With the planning that has occurred we have nearly put this ravine behind us.

 

He said that"The issue of oil tankers has been solved and today we are able to export all crude oil."

 

He added that one strategy which Iran has employed to get around the ban on European cover for vessels carrying its oil,was to establish international cover through Iranian firms such as Kish P&I.

 

He further added that"Today we not only insure our own ships,we insure the ships of other countries as well."

 

 

 

 

 

 

Source: http://www.steelguru.com/middle_east_news/Iran_has_mostly_overcome_sanction_challenges/296409.html
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