Will US sanctions against Iran petrochemical industry work?

Business Materials 10 June 2019 13:29 (UTC +04:00)

Tehran, Iran, June 9


The US Treasury Department has imposed sanctions on Iran's largest petrochemical group; however, an Iranian official believes that finding a replacement for Iran's petrochemical products is not easy.

"The situation in the global markets has caused rise of domestic petrochemical production and increase of demand for Iran's petrochemical products," said Deputy Director of Iran's Petrochemical Employers Association Fariborz Karimaei in an interview with Trend.

"It will be time consuming and expensive for importers of Iran's petrochemical products to find alternatives for Iranian petrochemicals because of the sanctions. It is a long process as in petrochemical industry, the surveys shall be conducted to evaluate market demands prior to production start," he added.

In his words, it is necessary to update technology to create new markets that will expand the destination for petrochemical products.

The United States has hit Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) with economic sanctions due to its ties with the country’s Revolutionary Guards (IRGC).

According to the US Treasury Department, the PGPIC group holds 40% of Iran’s total petrochemical production capacity and provides 50% of the country’s petrochemical exports.