Daily Management Review

China stops buying Iranian oil because of US sanctions


China and a number of other countries refused to buy Iranian oil for fear of falling under US sanctions, The Wall Street Journal reported, citing sources from the Iranian oil sector.

The United States, which had previously discontinued participation in the agreement on the Iranian nuclear deal, resumed sanctions against this country. The sanctions’ main purpose, according to US senior officials, is to bring Iran’s oil exports to a “zero mark”. Washington warned that sanctions would be extended to third countries that would continue the oil business with Tehran.

Temporary exemptions were introduced for seven states and Taiwan, including China, India, Turkey, South Korea and Japan, which continued to buy Iranian oil until April of this year. Greece, Italy and Taiwan were not able to take advantage of this delay on insurance-related issues.

At the end of April, US Secretary of State Mike Pompeo announced that the exemptions would expire on May 2, 2019, since that time the purchases by these countries have been terminated.

"They do comply with the sanctions," said Rahim Zaare, member of the economic commission of the Iranian parliament, to the publication.

Prior to this, according to the him, they bought 1.6 million barrels of oil from Iran daily.

At the same time, Iranian businessmen are not losing hope for the resumption of oil supplies to China. A private supplier told The Wall Street Journal that he was negotiating with small Chinese refineries on this topic, but the decision can be made only with the consent of the governments of Iran and China.

The Ministry of Foreign Affairs of the People's Republic of China criticized the imposition by Washington of unilateral sanctions against Iran and third countries, and confirmed that energy cooperation with Iran is carried out on a legal basis in accordance with international laws.

source: wsj.com