The eight traditional customers that got a waiver from the US to continue importing specific quantities of Iranian oil are fully compliant with the sanctions, Iran's deputy oil minister for trade and international affairs said on Saturday.
“China, India, Japan, South Korea, Taiwan, Turkey, Greece, and Italy that were granted waivers from America to purchase Iranian oil do not buy even one barrel more from Iran for fear of provoking US wrath,” Amir Hossein Zamaninia was quoted as saying by Shana.
The United States withdrew from a nuclear deal with Iran last year and imposed new economic sanctions on Tehran to force it to “come back to the negotiating table for a new deal.” However, fearing a serious negative impact on global oil supply and prices, Washington allowed eight customers to keep buying Iran’s crude for six months.
“US pressures on Iran’s oil export market notwithstanding, potential buyers of Iranian oil have considerably increased not only due to the competitive market but also because of bigger profits,” Zamaninia said without elaboration.
The senior oil official said there is a direct link between the unilateral US sanctions and the prevailing money laundering and corruption in the international oil market.
Not denying the negative impact of the illegal US restrictions on the people's well-being, he went on to say that European powers are not strong enough to resist US’ influence in global markets, especially when it comes to banking and finance.
There is a direct link between the unilateral US sanctions and the prevailing money laundering and corruption in the international oil market
Washington has often claimed that it wants to bring “Iranian oil export to zero to curb Tehran’s nuclear ambitions” and also compel it to “rethink its foreign policy and missile development program.”
Tehran at the highest echelons of power has declared that the US demands are preposterous and there will be no new talks (especially with the overtly hostile Trump administration) on the historic nuclear agreement signed with the six world powers in 2016 or on the two latter issues.
Bypassing Sanctions
Referring to a so-called "Special Purpose Vehicle" proposal as a means to bypass US sanctions to facilitate trade with Iran, he said the system will become operational sooner or later. “However, it will not be able to eliminate all the restrictions.”
Iran has urged European powers, which say they are committed to the nuclear deal, to oppose the sanctions by creating a financial mechanism that facilitates payment for Iranian oil exports.
According to SVB Energy, a Washington-based international consulting firm, China's oil import from Iran peaked in the January-April period to 664,000 bpd and the world’s second largest economy is allowed to buy a maximum of 350,000 bpd from December till June 2019 when waivers are expected to be renewed.
India will continue importing 280,000-300,000 bpd of Iranian oil, SVB Energy said, adding that she expects Turkey too will continue buying up to a maximum of 150,000 bpd. Iranian condensate production will not be affected with most exports (about 180,000 bpd) going to South Korea.
Japan's share of Iran oil exports, which stood at 314,000 bpd in 2011, will decline to as low as 130,000 bpd. Italy whose export amounted to 250,000 bpd in 2016 will have to cut its purchases by half. Reportedly, Taiwan will not import Iranian crude due to banking restrictions.
Criticizing the opponents of IPC, the new model of Iran's oil contracts, Zamaninia said, "Had more oil contracts been signed before they [the US] imposed new sanctions, US President Donald Trump would have been more cautious about forcing foreign firms not to do business with Iran."
Highlighting the contract with French energy major Total to develop South Pars Gas Field Phase 11, which has been a subject of dispute among officials and experts, he said, "If the agreement had been clinched sooner, they would have had to invest more and would not have left Iran so easily."
Total invested $40 million in the field in less than a year, but this amount could have been 100 times more had certain groups upheld national interest instead of personal gain, he said, without naming any faction or individual.
