Iran’s shipping line suffers $1 billion loss due to sanctions

Business Materials 12 May 2013 16:18 (UTC +04:00)

Azerbaijan, Baku, May.12/ Trend F.Karimov/

The Islamic Republic of Iran Shipping Lines has suffered $1 billion loss as a result of international sanctions, ILNA quoted managing director of the Islamic Republic of Iran Shipping Lines Mohammad Hossein Dajmar as saying.

The IRISL revenues have been reduced to below $1 billion from $2 billion, he noted.

The country's share in bunkering among regional countries is currently below 10 percent, he said.

"Unfortunately, the national oil industry has been sanctioned. This issue has affected bunkering. European countries have banned Iranian ships from berthing at their ports," he noted.

The United States and the European Union have been using increasingly onerous economic sanctions against Iran as part of their effort to force the country to make concessions in the protracted dispute over its enrichment of uranium, which it has continued in violation of United Nations Security Council resolutions requesting a halt to the enrichment.

The West has accused Iran of seeking the capacity to build nuclear weapons, an accusation that the Iranians have denied.

The sanctions have basically banished Iran from the global banking system, caused a severe devaluation in its currency and sharply reduced its ability to sell oil, the country's most important export.

In January, the latest European Union sanctions against Iran allowed ships to burn fuel made from Iranian oil if it's produced and loaded in another country, according to the insurers of 90 percent of the world's fleet, Bloomberg reported.

EU has cut its Iranian oil purchase alongside stopping insurance, reinsurance, Protection & Indemnity (P&I) and technical certification to ships that carry Iranian oil since July 1.

Recently Iran said that the Iranian Kish P&I club is ready to provide protection and indemnity insurance to Iranian tankers. Tehran says that domestic insurance companies will insure the oil tankers thereafter.