Monday, June 25, 2012

Violating Sanctions, Mitsubishi Corp Extends Oil Contracts with Iran

Japanese trading company Mitsubishi Corp has violated sanctions imposed on the Islamic Republic's oil sector by renewing its annual oil contract with Iran.

According to a report published by Reuters on Friday (22/6), the volume of new contracts by Mitsubishi from April is still unclear even though the company has bought 15,000 barrels of crude oil per day which exceeded last year's supply.

Trade sources said that Mitsubishi had transported Iranian oil in April to June. It is estimated that two Japanese companies buy Iranian oil, Showa Shell Sekiyu and JX Nippon Oil & Energy, which buy oil from Iran.

Toyota Tsusho, a Japanese trading company besides Mitsubishi, has also increased purchases of Iranian crude since April to be supplied to the two biggest oil buyers from Iran.

This happened when the United States and European Union imposed sanctions on the financial and oil sectors against Iran in order to tighten pressure on the Islamic Republic.

Under US sanctions, all foreign financial institutions are prohibited from transacting with the Iranian Central Bank and or facilitating Iranian oil transactions. The violating party will be boycotted by the US financial sector.

Following this step, on January 23, the European Union also imposed a ban on imports of oil and petroleum products from Iran and freeze the assets of the Iranian Central Bank in the European Union. In addition, the European Union also prohibits the sale of diamonds and gold and various types of metals to Iran.

Iran's Economy and Finance Minister Shamseddin Hosseini said on May 20 that oil prices would soar to 160 USD per barrel if EU sanctions on the Islamic Republic would be implemented.

In March, the International Monetary Fund also warned that if Iran's oil supplies were disrupted, then crude oil prices would soar to 30 percent which would result in shock new to the global economy.

IRIB / The Truth Seeker Media

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