Page 17 - IRANRptMay19

5.1.2 Import/export dynamics
Iran’s export value officially fell 5.8% y/y in 2018
Official Q1 bilateral trade between Iran and Azerbaijan grows 3.4% y/y
Iran and Turkey open a special channel for exports of Iranian oil
Tankertrackers puts Iran’s March oil and condensates exports at 1.9 b/d
Iran records
Iran’s total export value dropped 5.8% y/y in 2018 to $44.31bn, the Islamic Republic of Iran Customs Administration (IRICA) said on April 23.
Iran officially exported $46.98bn worth of goods in 2017.
Major US sanctions were applied to the Iranian economy last year in two waves, the first kicking in in August and the second in November. The second included the sanctions aimed at oil, gas and petrochemical exports.
The latest IRICA data also showed Iran’s gas condensate export value decreased by 30% y/y last year to $4.935bn from $7.063bn.
In all, some $14.15bn worth of petrochemicals were exported in 2018, accounting for 31.98% of Iran's total export value, the statistics showed.
Bilateral trade between Azerbaijan and Iran moved up 3.4% y/y to $230mn in the first quarter of this year, figures from the Azerbaijani customs administration show.
The official figures might appear to be on the conservative side given how the collapse in the value of the Iranian rial (IRR) during the past year in the face of heavy US sanctions reimposed against Tehran has made many goods to cheap to Azerbaijani buyers. However, much of that extra trade might have been accounted for by smuggling given the ease of cross-border travel between the two countries. There have been reports of shootouts between Iranian smugglers and Azerbaijani border guards in recent months.
The data determined that exports to Iran from Azerbaijan exceeded $11mn in value during the first three months of 2019, while goods flowing the other way during the period were valued at $219mn.
Also during the first quarter of 2019, Iranians accounted for 9.2% of all arrivals in Azerbaijan. However, the number of visits to Azerbaijan made by Iranians fell by 43.4% y/y. The decline was no doubt driven by the decline in spending power that Iranians have suffered as a consequence of the US assault on their economy.
April 22 saw Iran and Turkey open a special financial channel for exports of Iranian gas and oil to Turkey, according to Islamic Republic News Agency. Under the system Iranian goods might be paid for with Turkish lira to help it steer clear of US sanctions. Iran’s Foreign Minister Mohammad Javad Zarif, who was in Turkey last week for discussions on launching the financial mechanism, said he and his Turkish counterpart would personally oversee it. China, meanwhile, reiterated that it opposed unilateral US sanctions. "China-Iran co-operation is open, transparent and in accordance with law. It should be respected," foreign ministry spokesman Geng Shuang told reporters.
India's government was studying the implications of the US announcement, the PTI news agency cited sources as saying. New Delhi had reportedly hoped to be allowed to continue to reduce its Iranian oil imports gradually. In the first quarter of 2019, India shipped in about 40% less oil from Iran at about 313,400 bpd, the data also showed.
Iran is estimated to have exported 1.9mn b/d of oil and condensates in March, Tankertrackers.com said on April 17.
The data from the company put Iranian crude exports at 1.4mn b/d in March while condensates stood at 500,000 b/d. Condensate is a type of ultralight oil favoured by some East Asian refiners in countries including Japan.
17 IRAN Country Report May 2019 www.intellinews.com