Trade under sanctions: Iran manages to increase exports of petroleum products
25 January 2021
Iran's energy minister said the country's oil exports have increased despite US sanctions. If the United States returns to the nuclear deal, the country plans to re-enter the market of petroleum products.Iran's oil exports have increased significantly in recent months, and sales of petroleum products to foreign buyers have reached record highs, despite U.S. sanctions, according to a statement from Iran's Energy minister, Bijan Zanganeh. They were introduced after Trump withdrew from the nuclear treaty in 2018.
According to the minister, Iran managed to achieve a record for the export of petroleum products during the embargo. Meanwhile, during the period of sanctions, the country does not publish official data on sales and production of raw materials, which are the mainstay of the state's economy.
However, based on tracking the number of tankers, it can be seen that in 2018, the figures reached 2.8 million barrels per day, but in 2020 it fell to 300,000 barrels.
Iran recently addressed the new administration of US President Joe Biden with a proposal to return to the 2015 nuclear agreement between Iran and world powers, saying that Tehran will resume full compliance with the pact limiting its nuclear work if Washington lifts sanctions. At the moment, the United States has made a statement that the country does not intend to make a quick decision on the Iran deal.
According to Zanganeh, if the sanctions are lifted, Iran will return to the oil products market with more resources than before. Unlike crude oil, where the final buyer is a refinery, other products can be sold to smaller industrial buyers, making it difficult to track sales. This is what the country earns at the moment.
In the past, the main buyers of Iranian oil were China, India and South Korea. New Delhi and Seoul have halted purchases, and official Chinese data show limited Iranian imports.