China defying sanctions imposed on Iran

The recently released data shows Iran’s crude oil exports to China soared to the second highest level in December 2012, despite US-led sanctions against the Islamic Republic’s energy sector.

According to Reuters report China imported nearly 593,390 barrels per day (bpd) of crude from Iran in December last year, up 3.6 per cent from the preceding year and up 39 per cent from November. For the full year 2012, the highest level of China's crude imports from Iran stood at 633,000 bpd.

Industry officials in China attributed the enhancement in Iran’s crude oil exports to improvement in shipment. The problems that used to cause delays have been overcome recently. The period of delay has become shorter and overall, less frequent.

Iran is currently China's third largest supplier of crude, providing Beijing with roughly 12 percent of its total annual oil consumption.

 At the beginning of 2012, the United States and the European Union had imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

On October 15, 2012, the EU foreign ministers reached an agreement on another round of sanctions against Iran.

Iran terms these impositions illegal and insists that US-engineered sanctions were imposed based on the unfounded accusation that Iran is pursuing non-civilian objectives in its nuclear energy program.

According to another news report China will soon start importing polyethylene made in Iran, which became possible after the Islamic Republic partially lifted a ban on the export of petrochemicals late last year.

Lately, China-based market sources said that an estimated 100,000-150,000 metric tons of high density polyethylene (HDPE) and low density polyethylene (LDPE) from Iran is expected to arrive in China within a month aboard five vessels. The sources added that the Iranian tanker Touska will shortly discharge HDPE and LDPE at Shanghai port. 

On November 6, 2012, Iranian Deputy Oil Minister Abdolhossein Bayat announced that the Oil Ministry had lifted the ban on the export of seven petrochemicals; benzene, styrene monomer, caustic soda, linear alkyl benzene (LAB), melamine crystal, premature ventricular contraction (PVC), and polyethylene.