Iranian oil exports sees fourfold growth to South Koreа
By Abdul Kerimkhanov
The volume of exports of Iranian crude oil to South Korea in February increased more than fourfold compared with a month earlier, approaching the level before the introduction of U.S. sanctions against Tehran.
According to the South Korean news agency Yonhap, Seoul imported oil from Tehran in the amount of $476 million in February 2019.
This figure, obtained from the data of the South Korean Customs Service, is more than four times the $101 million announced in January, but lower than the $621 million recorded in 2018.
This amount is also close to the average import value of $539 million from January to July 2018, on the eve of U.S. sanctions.
Seoul resumed imports of Iranian oil in January 2019, two months after Washington restored all Iranian sanctions after the unilateral U.S. withdrawal from the 2015 nuclear agreement.
South Korea and seven other countries were given a deferment from punishment for not implementing sanctions against Iran for six months.
Condensate accounts for almost 70 percent of South Korean imports of Iranian oil. Naphtha, a key raw material for petrochemistry, is obtained from condensate.
Iranian condensate, preferred by South Korean oil refineries and petrochemicals firms, accounted for 51 percent of total condensate imports by Seoul in the first quarter of 2018.
Diplomatic relations between Iran and South Korea have existed for 54 years since 1962.
The trade turnover between South Korea and Iran for 10 months of 2018 amounted to 5.7 billion dollars in January-November 2018. Because of unilateral U.S. sanctions, Seoul stopped importing oil from Iran, and South Korean companies, such as Hyundai, curtailed their operations in Iran.
The United States introduced the second package of sanctions against Tehran, covering the energy, shipping and financial sectors of Iran on November 5.
The sanctions, in particular, limit the international activities of the Iranian National Oil Company, prohibit foreign financial organizations from conducting operations with the Central Bank and other banks of Iran. The sanctions also cover the activities of Iranian ports, shipyards and sea carriers.
Iran ranks 4th in the world in terms of oil resources and uses the second largest gas reserves in the world.
An important feature of Iran’s petrochemical industry is country's excellent geographical location and good access to Asian and European markets, as well as free seas, which makes it easier and cheaper to export and transport.
Iran is the only state in the Middle East that produces a large amount of necessary equipment for the petrochemical industry on its territory.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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