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Iran won't have another "Babak Zanjani case", MP says

Business Materials 19 October 2018 13:35 (UTC +04:00)

Tehran, Iran, Oct.19

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Sanctions are pressuring and it is likely that pressure will increase in the future and prevent us from selling oil, so we have to think about a way out, Salam Amini, a member of Iran parliament told Trend.

Referring to the case of Babak Zanjani he said, there were bitter experiences in the past about certain abuses.

Iran will be offering one million barrels via the Energy exchange, with all those barrels bound for exports, Kardor, who is managing director of the National Iranian Oil Company (NIOC), said last week.

Babak Zanjani , a local businessman, is facing a death sentence for refusing to pay back $2.8 billion worth of crude he sold to Asian buyers and never paid back the state under the previous sanctions era.

“This time, trying not to repeat the bitter experience of the past, we have decided to publicly and practically sell oil on the energy market, so the space is open to the companies which have the power and ability to sell their oil on the world market,” Iranian MP said.

By offering the oil via stock market in some way “we can circumvent the sanctions, and minimize the damages of the past,” he said.

He explained about the possibility of providing a space to rents and corruption and said that in the past Iran witnessed the abuse of power in the case of selling oil at the global market by individuals, but if Iran starts offering oil on the energy exchange, the corruption will be minimized.

“We are not experienced in terms of selling oil like this, but the attempt is to try selling oil to the buyers, minimizing corruption," he said.

Explaining the pricing method at the exchange, he said the pricing will be based on the competition. The Ministry of Oil will not interfere in pricing.

Referring to Iran's negotiations with major oil buyers from Iran, Amini said that the Islamic Republic is consulting with India, China, Russia and Europe, to outline the impact of US sanctions on its oil.

“The US claims that it will cut Iran`s oil export to zero. We believe that this is impossible. It may reduce our exports and impose sanctions but it will never reach zero,” he said.

The punitive measures against OPEC's third-largest oil producer are expected to be more harshly felt than a first wave of economic sanctions imposed in the wake of Trump’s decision in May to withdraw from the 2015 Iranian nuclear accord.

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