Turkey's Energy Minister Taner Yildiz, apparently in defiance of recently strengthened US sanctions against Iran, said his country will support Turkish firms that sell gasoline to the Islamic Republic.
"If the preference of the private sector is to sell these (petroleum) products to Iran, we will help them," Yildiz said in an interview with Reuters news service. "There is no demand for Turkey to halt the trade of these products with Iran," he said.
Under the new US legislation, signed into law July 1 by President Barack Obama, penalties will be imposed on businesses that sell or provide refined petroleum products worth $1 million or more or $5 million or more over a 12-month period.
The strengthened sanctions are clearly having an effect. In July, Iran's gasoline imports fell 50% in July as traders began to halt supplies. According to Energy Market Consultants Ltd., Iran received 60,000 b/d in July, compared to 120,000 b/d in May.
Traders retreat
"International trading companies have pulled back," said Vijay Mukherji, EMC research associate. "The US, Europe, and the [United Nations] are aiming to cut Iran off. They just don't want them to get any oil-product supplies."
It is not altogether clear where Iran obtained its reduced supplies last month, but speculation has focused on Russia, China, and Turkey.
Litasco, the trading arm of Russia's OAO Lukoil—in partnership with China's state-owned Zhuhai Zhenrong—delivered a 250,000-bbl cargo of gasoline to Iran's Port of Bandar Abbas in July.
A Lukoil spokesperson explained the shipment as a "one-off delivery" that took place within the context of "previously signed contracts."
Lukoil has the backing of Russia's Energy Minister Sergei Shmatko, who signed a joint statement in July on energy cooperation with Iran's Minister of Petroleum Masud Mir-Kazemi—including willingness to supply Tehran with oil products.
Tupras contract
Earlier this year, Tupras Turkiye Petrol Rafinerileri, Turkey's sole refiner and exporter of gasoline, concluded a 3-month term agreement with National Iranian Oil Co. to supply 70,000 tonnes/month of gasoline during July-September. Tupras officials declined to say if the gasoline had in fact been sold to Iran, but Tupras general manager Yavuz Erkut last month said his firm's agreement had come into effect ahead of the new sanctions imposed by the UN, US, and EU.
Even with the US sanctions regime in place, one Tupras official made his own sentiments evident to reporters.
"For us, Iran is more important than America, because we get crude oil from them," said the official, referring to the fact that Tupras buys 33% of its oil from Iran. By contrast, he said, "We don't get anything from America."
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