Page 18 - IRANRptAug18

5.1.2 Import/export dynamics
Iran, Belarus agree oil for machinery barter deal
US tells the world to quickly stop buying Iranian oil or face sanctions
US slightly softens stance on countries buying Iranian oil exports
Iran has agreed to a barter deal with Belarus in which it would swap oil for machinery, Iran’s Ambassador to Minsk Mostafa Oveisi was cited as saying by Mehr News Agency on July 31. In the 2013 round of sanctions imposed on Iran by the US, EU and UN, Iran created a national barter centre to keep international trade flowing while currency transactions were banned. India, South Korea and China took part in exchanges which involved machinery, cars and food staples like rice.
Oveisi made his comments following a visit by the head of the Mostazafan Foundation to Belarus. The foundation is the largest charitable fund in Iran with several billion dollars under its direction.
Mohammad Saeedikia, director of the foundation, said that barriers in the way of export activities should be removed so that ambassadors can cooperate with the foundation in line with spurring exports in other countries. "Unfortunately, most bylaws and regulations have been envisioned in the field of supporting imports," he said.
He added that the Mostazafan Foundation, which has significant stakes in several companies in Iran involved in farming and mechanical industries, should make hay with other countries’ technologies.
July 31 also saw Reuters report that imports of Iranian crude by major buyers in Asia fell to a seven-month low in June, as South Korea lowered imports significantly ahead of the sanctions.
Basing its figures on government and ship-tracking data, it added that China, India, Japan and South Korea last month imported 1.45mn barrels per day (b/d) from Iran, down 0.5% y/y.
Top buyer China's imports of Iranian crude in June rose about 2% y/y from a year ago to 525,000 b/d, while second biggest buyer India's imports from Iran jumped nearly 20% from last year to around 593,000 b/d.
There is some evidence of countries accelerating purchases of Iranian oil to stock up before the sanctions deadline but Indian refiners reportedly ordered about 12% less Iranian oil in June than in May, when the reimpositon of sanctions on Iran was announced.
South Korean purchases slumped 41% y/y to 183,000 b/d. Sources were quoted by Reuters as saying South Korea will not lift any Iranian crude or condensate in July, halting all shipments for the first time in six years amid the pressure from Washington.
The US on July 17 slightly softened its hardball approach to stopping Iranian oil exports by November with officials stating that countries that continue to buy such shipments of crude could avoid penalties by making "significant reductions" by the time Washington reimposes sanctions on Tehran later this year.
"We want people to reduce oil purchases to zero, but in certain cases if people can't do that overnight, we'll consider exemptions," US Treasury Secretary Steven Mnuchin said.
Some buyers of Iranian oil, including major buyers Japan and India, have said they cannot feasibly cut all imports from Tehran by a November deadline without hurting their own economies.
Mnuchin said Washington had told allies it expects them to enforce sanctions against Iran, "but if there are specific situations, we're open to listening." "We've said very specifically: There's no blanket waivers, there's no grandfathering," he said. But "we want to be very careful in the wind down
18 IRAN Country Report August 2018 www.intellinews.com