| Shell confirms it stopped selling gasoline to Iran |
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11/03/2010 14:41 (702 Day 15:01 minutes ago) | |||||
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The DINANCIAL -- British oil giant Shell confirmed on March 10 that it has stopped selling gasoline to Iran, the latest in a growing number of oil firms which have halted supplies for the Islamic Republic.
Royal Dutch Shell (RDS) said it had no official announcement beyond the confirmation, but according to someone with knowledge of the situation the company ceased gas sales to Iran sometime in 2009, according to CNN. "Shell is currently not selling gasoline to Iran," a Shell spokesman said, but he would not comment on whether the decision was related to talk of possible U.S. sanctions on Iranian gasoline imports.
AFP reported that the company declined to say if the decision was linked to sanctions on Iran imposed over its nuclear ambitions.
Total, the French oil company, has publicly said it could not invest in Iran in the present political climate, according to FT. But the company would not comment on whether it was still trading with the country. But Chinese state-owned oil traders, along with Petronas of Malaysia, are still selling petrol to Iran.
Shell’s decision comes as both US houses of Congress have backed legislation to impose unilateral sanctions on companies that provide Iran with petrol as well as on insurers of such shipments, such as Lloyd’s of London, the same source reported. Supporters of the sanctions describe the petrol imports as “Iran’s economic Achilles heel”.
Other large Western firms that have stopped fuel sales to Tehran include Switzerland's Glencore and Geneva-based Vitol, according to VOA News. Executives and traders say oil companies are moving away from Iran for political reasons.
Although Iran is one of the world's largest oil producers, it is forced to import petrol because its refineries are dilapidated after years of sanctions, AFP reported. The United States believes Iran is trying to develop nuclear weapons, but Iran denies the accusation.
Iran says its nuclear program is for peaceful purposes, but some fear the country wants to develop nuclear weapons, according to CNN. Under the Senate bill, Obama could impose new sanctions that would ban most direct imports and exports between Iran and the United States.
"If there was new legislation or sanctions, obviously we would comply with them as we would for any country," the Shell spokesman said, as the same source reported.
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