BAKU, Azerbaijan, March 26. If sanctions against Iran are lifted, Europe could become a favorable market for Iranian crude oil, petroleum products, and petrochemicals, Ali Majedi, former Deputy Minister of Petroleum of Iran and former Ambassador to Japan and Germany, told local media. Trend reports.
According to Majedi, Iran would be able to easily sell crude oil, petroleum products, and petrochemical goods in the European market. If the Joint Comprehensive Plan of Action (JCPOA) related to Iran's nuclear program is implemented as it was in the past, Iran could export up to 600,000 barrels of crude oil daily to Europe.
However, Majedi pointed out that the gas sector is a whole different ball game, as no fresh investments have been poured into Iran’s gas industry. Yet, cooperation with European companies could help develop Iran’s gas fields.
Regarding whether Iran and Russia would be competitors in the European market if sanctions are lifted, Majedi stated that in the oil market, Iran and Russia are not considered competitors. This is because, during the implementation of the CJAP, Iran exported only about 20-25 percent of its crude oil to European countries. However, Iran and Russia are seen as serious competitors in the gas sector.
To recall, on January 16, 2016, the JCPOA came into force between Iran and the P5+1 group (US, Russia, China, the UK, France, and Germany) regarding Iran’s nuclear program. However, on May 8, 2018, the US withdrew from the Joint Comprehensive Plan of Action (JCPOA) between Iran and the 5+1 group (Russia, China, the UK, France, the US, and Germany) and imposed new sanctions on Iran starting from November 2018.
The US imposed new sanctions against Iran in November 2018 over Iran's nuclear program. Since then, the sanctions have affected Iranian oil exports and more than 700 banks, companies, and individuals.
By the end of 2020, the Iranian parliament decided to pursue a strategic plan in the nuclear sector to counter the sanctions, leading to a suspension of additional steps and the Additional Protocol as per the nuclear agreement.
Consequently, the International Atomic Energy Agency (IAEA) faced a reduction in monitoring capabilities by 20–30 percent.
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