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Sanctions Affect on Oil and Gas Industry of Iran, but not Life of People: Official of Iran’s Trade Ministry

Politics Materials 9 August 2008 12:35 (UTC +04:00)

Azerbaijan, Baku, 8 August /corr.   Trend R.Azadbaxsh, T.Jafarov/ Economic sanctions imposed on Iran to stop its nuclear program adversely affected not the life of people, but mainly the oil and gas industry of the country. "Sanctions had an impact on the oil and gas industry of Iran, but not the life of people," official representative of the Trade Ministry of Iran told Trend .

BBC reported on 6 August that the six countries (China, Russia, France, Great Britain, the USA, Germany) prepare to use even more rigid sanctions against the oil industry of Iran to stop its program on uranium enrichment.

"As one my French friend says as the opinions on the sanctions were too much discussed in Europe, they lost their value," official representative of the Trade Ministry of Iran, who wished to remain unknown, said.

According to him, no one doubts that the economic sanctions against Iran had a serious impact on the oil and gas industry of the country. Not using new technologies as a result of sanctions greatly weaken the oil of Iran.

He noted that the oil and gas industry of Iran needs huge investments of the foreign investors and companies, which possess the new technologies.

Companies of Shell, Repsol, Stat Oil, Total and Japanese Index ceased investments in oil and gas industry of Iran.

The official representative of Iran says that the Islamic Republic needs not only European and American companies to achieve its targets in the oil and gas industry. So, in recent months, Asian countries, especially China expressed their intentions to invest in Iran.

The Rector of the Department of Foreign Relations of British University of Durham, Professor Anushirvan Ekhteshami told Trend that Iran has already been deprived of support of Russia and China, and the new sanctions against the country will be so strong that will paralyze the economy of the country. According to him, the oil companies of Russia or China do not possess contemporary European technology, and can not replace European or American companies.

According to the recent information provided by the Central Bank of Iran, this month the level of inflation in the country reached 26%.

In the opinion the official representative of Iran, the inflation rate in the country is not the result of the sanctions, but is connected with the money and economic policy of State.

He added that the reason for inflation rate is the inflow of oil monies into the country, the program of the economic reforms of the President of Iran Ahmadinejad and the incapacity of the newly-appointed officials in the short time to ensure the performance of this program.

Iranian professor on the economy of the Boston University, Kamran Dadkhah, told Trend that the economy of Iran more greatly shook not from the foreign sanctions, but the erroneous economic projects of the government. "As the prices of oil are high, the influence of sanctions against Iran was not so tangible, but after certain time, this will exert its real influence," said professor Dadkhah by telephone from Washington.

Iranian representative said that according to the officials of Iran, the increase the oil prices will weaken the action of the sanctions, which will be accepted against Iran. So as in the past year, the sanctions, used against Iran, did not influence the fund of oil moneys.

For a period of 30 years, Iran faced the sanctions of America, after the revolution, it was in the state of war for eight years. Thus, the economic structures of Iran already collected large experience how to function under the conditions of sanctions, which will be used.

The incomes of Iran from the oil export this year totaled $50bln.

The correspondent can be contacted at: [email protected]

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