Sanctions against Iran: ‘Hara-kiri’ by the Europeans?

Russian TV: Iran has halted oil sales to Greece in response to the EU sanctions coming into force in July. The country’s Press-TV reports Tehran also cut supplies to Spain and may put on halt those to Germany and Italy.

This month Iran stopped selling crude to 2 Greek oil companies because they failed to pay their bills. It has already stopped exports of oil to Britain and France.

While Iran accounts for less than 5% of the world’s oil production for many countries it is essential. Europe is less reliant on Iran’s oil than Asian countries, but Europe’s weakest economies of Greece, Italy and Spain, heavily depend on Iranian crude.

The head of Russian state monopoly “Transneft”, says compensating for the loss of Iranian supplies which the EU will not get because of the sanctions is almost unreal.

“It’s difficult to make up for this volume and imposing sanctions against Iran is like committing “hara-kiri” by the Europeans. And this policy of theirs can hardly be explained by common sense. It looks as an attempt not to be lagging behind a more powerful global player”, said Nikolay Tokarev.

Grigory Birg from Investcafe says reaching higher output and finding new sources will take a lot of time, that’s why we can’t talk about covering the Iranian oil gap.

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1 reply

  1. Right, it is the height of idiocy to endanger the fragile economic recovery with the danger of escalating oil prices. If ‘hot war’ will follow ‘cold war’ than escalating oil prices are certain – a death blow to the economic recovery.

    The economic consequences could be much more severe than the actual military ones. (short of using the atomic bombs).

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