Arab Today, arab today iran suffers under sanctions faces threat of more
Last Updated : GMT 03:14:05
Arab Today, arab today
Arab Today, arab today

Iran suffers under sanctions, faces threat of more

Arab Today, arab today

Arab Today, arab today Iran suffers under sanctions, faces threat of more

Tehran - AFP

Iran, OPEC's second-biggest oil producer, is threatened with new economic sanctions by US President Barack Obama, who has vowed to make it "pay a price" for an alleged assassination plot in Washington. Western and UN sanctions in force over Iran's controversial nuclear programme already weigh heavily on the country, which is dependent on its rich oil and gas sector. Officially, Iran's leaders say the sanctions have only strengthened their economy, and that they have found new partners such as China to replace the Western ones leaving. Despite some delays in getting paid because of problems in effecting financial transactions, which for instance left India $5 billion in arrears before settling early this year, Iran continues to sell its oil without too much problem. This year it is projected to rake in more than $100 billion because of the high price oil fetched over 2011. The country, which ranks behind only Saudi Arabia in the Organisation of Petroleum Exporting Countries, pumps an estimate 3.5 million barrels of oil a day. It also has the second-biggest gas reserves in the world after Russia. "The oil bounty has allowed it to mitigate the effects of the Western embargo," a European economist in Tehran said on condition of anonymity. "Trade circuits have become more complicated because of the sanctions against the main Iranian banks, but Iran has the cash to keep the country running," he said. Imports have fallen four percent since the start of the year, but non-oil exports have grown 40 percent and could bring in $35 billion, according to government figures. "But Iran still has a currency problem because it is selling more and more oil, especially to Asia, against consumer products to get around the bank sanctions," one European expert said, also declining to be identified. Tehran spends $3 to $4 billion dollars a month shoring up its currency, the rial, and to pay handouts to the population to compensate for energy subsidies that were cut last year, according to estimates by several Iranian and foreign experts. They believe Iran's finances have become taut. As a possible indication of the problem, the rial has made several drastic movements in the past months, despite the stated goal of the central bank to ensure stability. Another symptom appears to be delays piling up in government payments to suppliers, mainly because the state is believed to be drawing money from ministerial budgets to pay the public handouts, according to parliament. The energy ministry is thought to be $2.7 billion behind in its payments, according to the head of the parliamentary committee on energy, Hamidreza Katouzian. The delays are now being felt by oil and gas subcontractors, even though they are meant to be given priority in being paid, several sources in the sector told AFP. Iran's main financial problem is that Western investment has dried up. And new partnerships forged with Chinese, Turkish and Russian companies have not plugged the gap, according to a European analyst in Iran. Foreign investment needs are officially put at around $10 billion a year in the oil and gas sector. Yet total direct foreign investment over the past Iranian calendar year, from March 2010 to March 2011, amounted to $3.5 billion for all sectors, according to the economy ministry. China, one of the few allies Iran has against Western pressure, has in the past six years signed energy investment deals worth $40 billion. But less than $3 billion is believed to have been invested thus far, Western experts say. Iran has multiplied warnings to China over the delays. Last week it announced the suspension of a $16 billion contract with one Chinese company in an offshore Gulf gas field to push Beijing to make good on its promises to develop another zone, in the giant South Pars field. The situation is little better with Russia, even though Moscow is hostile to Western sanctions. Iran, also last week, kicked Russian energy giant Gazprom out of a $2 billion dollar oil development project after accusing it of dragging its feet for the past two years.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today iran suffers under sanctions faces threat of more Arab Today, arab today iran suffers under sanctions faces threat of more

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday