The Strategist

Japan resumes exporting Iranian oil

01/21/2019 - 11:36

Japan, following China, South Korea, India and Turkey, resumed imports of Iranian oil. This was announced on Monday by the head of the Central Bank (CB) of Iran, Abdolnaser Hemmati.

“Following China, South Korea, India and Turkey, Japan also began to import Iranian oil,” IRNA quoted him as saying. “Gradually, new revenues from the sale of hydrocarbons will flow into the country's economy.”

He noted that thanks to the agreements signed between the Central Bank and exporting companies, "Iran’s non-oil exports will also increase."

“I assure our citizens that the state has enough foreign exchange reserves to fully meet the basic needs of people,” he added.

On November 5, 2018, US sanctions against Iran came into force. They are applied to exports of Iranian oil, as well as more than 700 banks, companies and individuals. At the same time, the US authorities issued temporary permits (for 180 days) for eight countries and territories to import Iranian oil. The list includes India, Japan, the Republic of Korea, Italy, Greece, Turkey and China, as well as Taiwan.

At the end of 2018, oil production in Iran fell by more than 1 million barrels per day compared to the end of 2017 to 2.8 million barrels per day. At the same time, the export of hydrocarbons from Iran decreased to an even greater extent from 2.5 million barrels per day to 1 million barrels, as the country's domestic consumption grew due to the transfer of a number of power plants from natural gas to oil. The decrease in the volumes of hydrocarbons sold has significantly reduced foreign exchange earnings in the Iranian budget, which has jeopardized the country's ability to fully finance the social sphere.