Page 5 - IRANRptSep22

quandary for both the European Union and United States, as Iran, like Russia is also under significant US sanctions.
With sanctions still in place in an effort at keeping Iranian oil off world markets, Iran has been relying on China turning a blind eye to American demands to import substantial amounts of Iran’s crude on the grey market. Iran's oil export volume is running at a level 40% higher than was seen a year ago, according to the National Iranian Oil Co (NIOC).
Iran's gas export earnings for the first four months of the Persian calendar year (March 21 to July 21) reached nearly $4bn, higher by 580% y/y, the semi-official ISNA news agency quoted Oil Minister Javad Owji as saying on July 27. The Islamic Republic has expanded gas output significantly at South Pars in recent years and supplies are estimated to flow at an average of 850-950mn cubic metres per day, topping out at 1bn cubic metres.
The National Iranian Oil Co. (NIOC) and Russia’s Gazprom on July 19 signed a memorandum of understanding (MoU) covering investment worth around $40bn. Furthermore, Iran and Russia will sign a gas purchase and swap deal in the very near future, according to Iranian Oil Minister Javad Owji on August 26.
Iran's petrochemical exports rose by 38% y/y to $9.14bn in the first five Persian calendar months (March 21 to August 21), state media reported on August 28. Petrochemicals accounted for 44% of the value of Iran’s total exports in the period, according to the Islamic Republic of Iran Customs Administration (IRICA). Petrochemicals provide Iran with its second-largest source of export revenue after crude oil, constituting almost one-third of the country’s non-oil exports.
Iranian President Ebrahim Raisi and Russian counterpart Vladimir Putin have voiced their wish to pursue de-dollarisation in global trade during Putin’s visit to Tehran on July 19. Raisi remarked on June 29 that an independent financial system would make it "impossible for any country to exert influence or pressure on it".
Meanwhile, Iran placed its first official import order using a cryptocurrency, Tasnim News Agency reported on August 9. Such orders could provide a way for Tehran to dodge US sanctions. The type of cryptocurrency used was not disclosed by officials.
The Iranian rial (IRR) hit a record free market low of 332,700/$ on June 12 as market sentiment further soured on prospects for the talks aimed at keeping alive the nuclear deal. The euro and the pound sterling also fell to all-time lows at IRR349,900 and IRR400,000, respectively. The pound broke the 400,000 barrier for the first time in 2022.
The worsening “street rate” of the dollar and other hard currencies in Iran are a further burden to the consumer faced by painful inflation, officially at around 40%. Prices for wheat-based, dairy and pasta products in Iran have been rising at a far faster rate.
Iran’s official annual inflation rose 13.2 pp to a record 52.5% in June from
39.3% in May, the Statistics Center of Iran (SCI) announced on June 28.
Price growth in food, beverages and tobacco grew by 32.2 pp to 81.6% in
5 IRAN Country Report September 2022 www.intellinews.com