The Trade embargo on Iran

Lucie Jezlov Kateina Sachunsk Julia Ustinova

The Trade embargo on Iran

the end of 2011 USA declared extended sanctions against Iran -> followed by EU next year
23rd January EU decided to declare an embargo on Iranian oil

What the trade embargo means? EU countries no NEW contracts for the import of Iranian oil earlier agreement arent canceled until 1st July

The uranium processing program

The trade embargo is result of: several years dispute over the controversial Iranian nuclear program during December and January again escalate = > because of testing two long-range missiles by Iran

Two worlds - two opinions:

Teheran: uranium processing programs are used exclusively for peaceful purposes

x
The West: worried that Iran is trying to build a nuclear weapon => stricter measures will help reduce or stop Iran's nuclear research => sanction against Irans central bank => the financing of Iran's nuclear program more difficult

 EU = 20% of Iranian oil production Asia = the most of Iranian oil China = major importer China isnt going to join the embargo US and EU => is trying to persuade Asian countries (especially India) to reduce imports from Iran
Supplies from Iran -> replaced by the oil from other countries in the Persian Gulf Reaction of Iran - closing of the key Strait of Hormuz through which 40% of world's oil is transported

What it means for the states of the EU?

European Union imports from Iran 450 000 barrels oil per day, its 20% of Iranian exports There will be a gap - necessary to replaced Saudi Arabia (the biggest world exporter)
Country Saudi Arabia Iran Iraq Million barrels per day 9,34 3,53 2,67

United Arab Emirates

Venezuela Kuwait

2,53
2,42 2,26

What it means for the states of the EU?

clossing the Streit of Hormuz could limit the supply of oil from Saudi Arabia high prices of oil

countries in Sousth of Europe - most of oil from Iran, concluded advantageous contracts

The effect on Iranian economy

80% of Iranian income come from oil exports The EU is the second-biggest customer Teheran: well find new market, new buyers of Iranian oi However!! Lower prices - It negatively affected all Iranians India and Chine opportunity to be stronger India's oil minister: Sanctions were forcing Iran to sell more cheaply and that India planned to take full advantage of that to buy as much as it could.

Thank you for your attention.