Iran’s OPEX: sanctions cannot cripple petrochemical sector

Baku, Azerbaijan, June 10

By Elnur Baghishov – Trend:

The sanctions imposed by the US on the petrochemical sector of Iran are not so powerful that they can cripple the industry in the long run, Hassan Khosrojerdi, head of Iranian Oil, Gas and Petrochemical Products Exports' Association (OPEX), told Tejaratnews, Trend reports.

According to him, there is nothing to be worried about with regards to the sanctions imposed against Iran's petrochemical industry.

He said that these products are being exported by some businesses.

Khosrojerdi noted that, in the meantime, the sanctions may cause disadvantages for some individuals who freely export petrochemical products.

"After that, people who export petrochemical products will no longer be able to do so," he said.

Khosrojerdi said that the new US sanctions would not reduce the sale of petrochemical products, and that although these products had been previously exported to foreign countries, the domestic demand needs to be met from now on.

"Therefore, small industrial enterprises will be able to easily supply petrochemical products. In the future, direct export of petrochemical products will be reduced, "he said.

On June 7, 2019, the US Department of the Treasury accused Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) of providing financial support to the Khatam-al Anbiya Construction Headquarters controlled by Iran's Islamic Revolutionary Guard Corps (IRGC). The company and its big network of 39 subsidiary petrochemical companies and foreign-based sales agents were added to the list of sanctions.