Iranian economist: Iran needs oil money

Oil&Gas Materials 13 May 2019 19:05 (UTC +04:00)

Baku, Azerbaijan, May 13

By Elnur Baghishov – Trend:

Iran needs oil money for import of 1st and 2nd grade raw materials, Farshid Bagherian, Iranian economist expert, told Trend.

According to Bagherian, complications arise in the imports of a number of products to Iran due to restrictions. Since these products are not produced in Iran and are available only from abroad, this leads to an increased dependency on oil sales for Iran.

Bagherian said that, because of the sanctions imposed by the US and the insufficient amount of imports, it is important for Iran to produce the non-imported products the country needs. This is an economic principle, but for now this principle cannot be expected to promptly solve the existing problems, as Iran's economy, production and industry are not directed at producing 1st and 2nd grade raw materials.

"These substances are not imported into the country due to the sanctions," the expert said. Bagherian stressed that if Iran starts producing industrial raw materials domestically, then that economic principle might be implemented, and the Iranian economy would grow stronger despite the sanctions.

The US imposed sanctions on Iran's oil sector in November 2018, while providing a 6-month exemption period for eight countries buying oil from Iran. The period ended on May 2 and was not prolonged by the US. Moreover, the US added Iran's metal industry to the list of sanctions on May 8, 2019.