Iran petrochemical exports' capacity to EU is limited

Photo: Iran petrochemical exports' capacity to EU is limited / Oil&Gas

Baku, Azerbaijan, August 2

By Umid Niayesh - Trend:

Iran does not have excess capacity for petrochemical exports to European markets, Ahmad Mahdavi, the director general of the Petrochemical Employers Association said.

Currently Iran exports its petrochemical goods to European countries on a limited level as single shipments, Mahdavi said, the country's Mehr news agency reported on August 2.

Mahdavi did not disclose more details about the current volume of the exports and the countries which are keen to import Iran's petrochemical products.

In April, Iranian officials announced that some European countries including Italy, Spain and Greece have resumed imports of petrochemical products from Iran.

Iran's oil and petrochemical exports have increased following some sanctions relief on the Islamic Republic, including the EU and US bans on the country's petrochemical exports.

The ban ease is part of an agreement inked in Geneva last November between Iran and the P5+1 (five permanent members of the UN Security Council - the US, France, Britain, Russia, and China - plus Germany), under which the six countries agreed to provide Iran with some sanctions relief in exchange for Iran agreeing to limit certain aspects of its nuclear activities during a six-month period.

The Geneva deal took effect on January 20 and expired on July 20. However the two sides agreed to extend their talks for four months till Nov. 24 to reach a permanent deal on Iran's disputed nuclear program.

Above 40 million tonnes of petrochemical products were produced in Iran during the last fiscal year in the country, which bring $ 9 billion in income for Iran.

The country's fiscal year starts on March 21.

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