Iran Bypassing Sanctions on its Oil, Aided by Asian Customers and the Obama Administration
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Iran's oil minister Rostam Qassemi.
Photo Credit: Moslem Abbasi, IRNA
Iran is involved in hectic attempts to lower the insurance costs for its oil shipments, and, apparently these attempts are working.
Iran Insurance Company (IIC) Chairman Javad Sahamian has told Tehran Times that Iran will provide insurance coverage for any oil tanker carrying Iranian crude oil. “After the sanctions, Iran extends insurance coverage for every oil tanker loading in Iranian ports,” Sahamian said.
Seyyed Ataollah Sadr, managing director of Iran’s Ports and Maritime Organization, said last July that Iran would give insurance to “any foreign ship that enters Iran’s waters” but did not elaborate on how the scheme would work in practice.
The consortium providing the insurance to these rogue shipments includes domestic insurance firm Kish P&I, itself underwritten by Central Insurance of Iran, and Razi Insurance Company, which in August was reported by the Fars News Agency (FNA) as “ready to join the consortium of domestic companies in this field.”
According to various sources, Kish, which is the Iranian national insurance company, has already begun to independently insures all vessels leaving Iranian ports, replacing insurance service by European companies, which was stopped on July 1, when the European Union sanctions on the Iranian oil industry went into effect.
Now, as a result of self-insuring, the premium for transporting oil to Japan dropped from $3.17 a barrel in July to $2.00 in August.
In addition, carriers belonging to the National Iranian Tanker Company, (NITC), began independently transporting oil to countries in the Far East in order to help them avoid the sanctions. The NITC frequently uses small, private Iranian shipping companies flying foreign flags. Coverage provided by the Kish Company for the fleet of tankers has amounted to $1 billion.
Turkey’s imports of Iranian crude oil have jumped in August, ignoring possible friction with the U.S., after hitting a multi-year low in July, using Iranian-owned tankers.
Kish uses a secondary guarantor, the Central Bank of Iran.
The U.S. and European countries are aware of the latest developments, and have begun to demand penalties for Asian countries attempting to avoid the sanctions. Many analysts predict, however, that the U.S. is not planning to enforce the sanctions with real, tough measures against countries like Japan or China.
The U.S. has also given several countries sanction waivers after they cut imports prior to the imposition of the full embargo. Turkey was granted a 180-day exception from sanctions from June 11 as a result of an initial 20 percent cut in July, according to Tehran Times.
With the elections approaching, the last thing President Obama wants is to get into complications with those two countries, or with South Korea. Analysts add that the U.S. economy is benefiting from the Asian markets’ clandestine oil imports from Iran.
But all hope is not lost – it turns out Iran’s biggest enemy is its own inefficiency. A research study conducted by Reuters last Week revealed China’s lack of satisfaction with the timing of the Iranian oil deliveries, which used to take 48 hours and now takes up to 10 days.
But the Kish insurance policies do not cover instances of late delivery; and an unhappy China is pressuring Iran to improve service or improve the compensation system.
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11 Responses to “Iran Bypassing Sanctions on its Oil, Aided by Asian Customers and the Obama Administration”
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Thank You President Obama for your daily stab in the back.
I am not sure why anyone is surprised that when truth be told, chairman barack is actually financing and promoting iran. Let's not forget that in 2009, chairman barack and hillary DID provide repeated support and excuses for the ayatollahs in their massacre of over 300 Democracy seekers. That was just the "g-d in his own mind's" way of learning and preparing for the election season in the US in 2012!
Arie Rosenrauch that is total nonsense.
I purposely sourced a known anti-Jew media. BOTTOM LINE: 300 murdered and chairman barack was more concerned about being seen as the good guy by islamist butchers! And last week's murders of 4 US CITIZENS in Benghazi for which he is complicit (there have been prior attacks on the mission, yet so as not to offend the islamists, he ordered security removed and ordered all US Marines at other MidEast embassies to remove live ammo from their weapons and stand down on 9/11 so as not to offend the local islamist populace) prove just who and what he really is – and who you obviously support murdering US citizens!
http://news.bbc.co.uk/2/hi/8104362.stm
good old OBAMA helping the iranians gather thier NUKES.
Typical RepubLikud nonsense.
No matter how kind and benevolent America is to the Muslim world, they will always treat her with hatred and great contempt. These acts of kindness and generosity should be reserved for the dogs rather than those ungrateful Muslims.
You mean like no matter how much America does for Isreal they will always treat America with disrepect and hatred and contempt?? You may no like Obama but the MAJORITY of the US elected him and are insulted when Neytanyahu involves himself in our political process. I find the disrepect from one leader to another appauling and down right disrepectful to the American people.
Michele Hallet Answer my question mickey: You obviously hate Jews. ALL your posts indicate that clearly. So why do you come to a Jewish media to post your venom? Can it be that ONLY the Jews will give even your ilk the freedom to speak so freely? You really are PATHETIC! Now, go back and drink some more hallal kool aid. Your chairman awaits your fealty
I find it amazing that with all that Obama and the US does for Isreal that they take every opportunity to blame the US for their woes. I also think that Netanyahu has no business sticking his nose into US elections or politics he has enough problems in his own country. Obama has stood by Isreal just like every other US President and this is the Thanks you get from them.. PATHETIC
First of all, no one is attacking the US! IN FACT, there is overwhelming mutual support and admiration by Israelis for Americans and vice versa! In fact, the latest polls in the US shows close to 80% support for Israel amongst Americans – you obviously are in the 20%. The contempt is for chairman barack, his kapos and politburo who have dedicated themselves to Israel's demise! obama started his OPEN contemt (his private contempt was evident in his support of such noted Jew haters as sharpton, jackson, wright, and the nazi soros). In his apologetic speech in cairo in 2009, he was open in his attacks on Jews to the great pleasure of the islamists. chairman barack has stood by Israel? Really? That must explain the US votes in the UNHRC attacking the Jewish State since he took office! And the global tours by hillary and panetta attacking Israel's audacity at daring to defend herself. Netanyahu intruding? Netanyahu is speaking out in defense of his country and its people. If that is an intrusion in US politics, then it does show that yours and the chairman's political doctrine includes Israel's demise! And now, let's look at the demoslamist convention platform. The DNC admitted it was reviewed and promoted by the chairman. The change – and let us be real, the delegates DID NOT want it changed despite the make pretend vote. What happened on the floor was obvious. – then STILL included a comment promoting terrorism against the Jewish State by validating hamas, and called for a move to Israel of anyone who claimed to be a "Palestinian" thereby killing the face of the Jewish State. But I have to ask michele, given your hate of Jews – and not just you but so many Jew haters – why do you come to a Jewish media to post your venom? Is it your knowing that it is only the Jews that would give you an open forum to vent? PATHETIC!