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Revival of Iran nuclear deal to increase oil revenues - expert

Business Materials 19 August 2022 18:02 (UTC +04:00)
Revival of Iran nuclear deal to increase oil revenues - expert

TEHRAN, Iran, August 19. The possible revival of the 2015 nuclear deal would increase Iran's oil export and revenue, said an energy expert Mohammad Ali Khatibi, Trend reports citing ILNA.

Iran's oil industry needs about $180 billion investment to grow and reaching a deal in the nuclear negotiations would lead to foreign investment and new technologies for the industry and an increase in oil export, he said.

The expert indicated that lifting sanctions could accelerate bank transactions and possibly secure Iran access to its oil export revenue and freedom to invest.

Iran can export oil without limit and foreign companies could invest in Iran's oil and gas industry without concern about sanctions, he said referring to the advantages of agreement in nuclear talks.

The European Union and the United States said they were studying Iran's response to what the EU has called its "final" proposal to save a 2015 nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) after Tehran called on Washington to show flexibility.

In January 2016, JCPOA was launched between Iran and the P5+1 group (US, Russia, China, UK, France, and Germany) in connection with Iran's nuclear program. In May 2018, the US announced its withdrawal from the deal and imposed sanctions on Iran in November of the same year.

To preserve the agreements reached as part of the JCPOA, the European signatories of the deal started in January 2019 that a financial mechanism for maintaining trade with Iran called INSTEX was formed.

On May 8, 2019, Iran announced that it had ceased fulfilling its commitments regarding the sale of over 300 kilograms of uranium, as stated in the deal, basing its decision on the other signatories that have not fulfilled their obligations. On July 7, Iran announced that it will not be fulfilling its commitments regarding the enrichment of uranium at 3.67 percent and the reconstruction of the Arak Heavy Water Reactor Facility as stated in the deal.

Iran announced that it will enrich uranium using next-generation centrifuges and will not mix it with the enriched uranium residues as part of the third step of reducing commitments in JCPOA on Sept.5.

On Nov. 5, 2019, Iran announced that it took the fourth step in connection with reducing its commitments to the nuclear agreement. So, uranium gas is being pumped into the centrifuges at the Fordow Fuel Enrichment Plant. On Jan.2020, Iran took the last fifth step in reducing the number of its commitments within JCPOA.

As reported, in late 2020, the Iranian parliament has decided to implement a strategic plan to tackle the sanctions, citing the non-implementation of the Joint Comprehensive Plan of Action (JCPOA) signed between Iran and six countries and the imposition of sanctions on Iran. According to the decision of the Iranian parliament, as of February 23, Iran suspended the implementation of additional steps and an additional protocol provided for in the nuclear deal.

The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies, and individuals.

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