Domestic Economy

Exports to Receive Share of Subsidy Reform Plan

Exports to Receive  Share of Subsidy Reform PlanExports to Receive  Share of Subsidy Reform Plan

The government is preparing a plan to provide exports with their share from the subsidy reform plan, Managing Director of Islamic Republic of Iran Shipping Lines, Mohammad Hossein Dajmar, said on Sunday.

“Should the plan be ratified, 300 trillion rials will be allocated for facilitating the transit of export products to the target markets, especially to Russia,” he was quoted by MNA as saying.

Dajmar said the plan is to be financed through IRISL’s internal resources.

He said that the new financing scheme will help decrease the cost of exports, which he said has so far been “very expensive."

>>Russia as New Target Market

Meanwhile, the IRISL chief said that the plan’s main goal is to facilitate inexpensive ways through which Iranian products can be offered at overseas markets, especially to Russia. The listed commodities for export to Russia, he said, are the sort of products that need to be transported by “hi-tech refrigerators”. Iran is currently faces a shortage of these containers.

Russia has become one of the target markets for Iran's fruit exports after harsh sanctions were imposed on Moscow by the European Union following the crisis in Ukraine.

Deputy minister of industry, mine and trade, Mojtaba Khosrotaj, had recently described Russia’s market as “highly competitive". He said, “If we want to expand our exports to the Russian market and have a continuous presence in such a competitive market we need ships that are equipped with high-tech fridges.”

>>Sanctions Lift Could Uplift IRISL

Expressing hope that the ongoing nuclear talks between Iran and P5+1 will yield positive results, he said, “We are waiting for the final result of November nuclear talks and we hope that the IRISL will be removed from the sanctions list as a result of a permanent deal.”

In 2011, the EU targeted over 30 IRISL holding companies as part of Western-led sanctions imposed against Iran over allegations of diversion in its nuclear energy program. Tehran says its nuclear program is aimed solely at civilian purposes.

Following the sanctions announcement, several IRISL vessels were temporarily seized in foreign ports under the accusation that they were used by Iran as a means to circumvent the sanctions. Iranian officials denied the reports and the ships were released shortly afterwards.

Iran and the P5+1 (five permanent members of the UN Security Council plus Germany) are trying to reach a comprehensive nuclear deal by 24th November to end years of standoff between Iran and the West over the latter's nuclear program. The dispute resulted in the US and the EU imposing several rounds of sanctions against Iran's economy, particularly targeting its oil industry, banking system and maritime transportation.