Press TV – January 19, 2014
Iran is likely to spend oil funds, expected to be unfrozen with the implementation of its nuclear deal with world powers, for aircraft and car spare parts, an Iranian deputy oil minister says.
Ali Majedi made the remarks in an interview with The Wall Street Journal as Iran’s nuclear accord with the Sextet of world powers is to take effect on Monday.
He said Iran may spend its oil money, currently stuck in foreign banks, on machinery and spare parts for aircraft and automotive industries.
World powers are set to ease sanctions on Iran under last November’s interim nuclear accord.
The sanctions relief is targeted at Iran’s aircraft, automotive and petrochemical industries. Billions of dollars in oil revenues will be also unfrozen.
Majedi said unfreezing Iran’s petrodollars opens “a new window of cooperation with the Europeans and the US.”
The official said Iran may also consider buying stocks in Asian refineries in a bid to strike long-term oil sale contracts.
“With sanctions, it’s difficult. We are trying to be ready” for the time when sanctions on Iran’s oil are lifted, said Majedi.
On January 12, Iran and the Sextet of world powers finalized an agreement to start implementing the Geneva nuclear deal from January 20. The accord is aimed at setting the stage for the full resolution of the West’s decade-old standoff with Tehran over its nuclear energy program.
Under the nuclear deal, the European Union will suspend 2012 sanctions against insuring and transporting Iranian crude oil.
The EU will also suspend embargoes on gold, precious metals and petrochemical products and raise the ceiling on financial transfers not related to remaining sanctions.
If everything takes place according to the plan, as of Monday, EU companies will be authorized to insure or transport Iranian crude oil to Tehran’s major customers, China, India, Japan, Korea, Turkey and Taiwan.