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Iran’s problems with P&I clubs settled

Business Materials 10 May 2016 20:18 (UTC +04:00)

Baku, Azerbaijan, May 10

By Khalid Kazimov - Trend:

Iran's problems with the International Group of the Protection and Indemnity (P&I) Clubs have been settled, says an Iranian official.

Amir Hossein Zamaninia, Iranian deputy oil minister, said the interaction between domestic and foreign companies improved following the implementation of the Joint Comprehensive Plan of Action (JCPOA, aka nuclear deal), SHANA news agency reported May 10.

He added that the interaction between Iranian and foreign companies will cause a boom in the country's oil industry.

Although the international sanctions on Iran have been removed since Jan. 16, covering the insurance risks of tankers carrying Iran's oil cargos has been a sticking point in normalizing ties between the Islamic Republic and the EU.

In the absence of the European insurers, Iran's state-backed Kish P&I club currently insures the Islamic Republic's oil shipments to India, as well as China and Turkey.

However, the National Iranian Oil Company says most of its customers prefer the International Group of the Protection and Indemnity Clubs to provide insurance for tankers.

The P&I clubs failed to provide full coverage for tankers as the American insurance industry players are still banned from doing business with Iran and the clubs partially work under the US insurance policies.

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