Turkey has no plans to cut its imports of Iranian oil despite rising pressure from Western powers and initial signals it would buy more Saudi oil, Turkish and Saudi sources have told Reuters.
Ankara’s intentions became clear after a high level delegation traveled to Riyadh over the weekend and decided against requesting additional supplies from top oil exporter Saudi Arabia, the sources said.
The Kingdom is the only producer in the world that has spare volumes to offer to replace Iranian oil.
The development will help Iran avoid extra pain from reduced sales of crude as the European Union seeks to ban Iranian oil imports from July 1.
US sanctions against Iran over its nuclear program have sought to curtail oil exports by targeting its central bank and preventing countries from paying for Iranian oil.
A Saudi oil ministry official said Turkish energy officials had not asked for additional oil when visiting Riyadh last week. “Turkey did not ask for more oil, and has no plans to ban imports from Iran,” he said.
An Ankara-based energy official said: “Turkey will continue to buy from Iran unless the United Nations supports/endorses the EU and US oil embargo.”
A UN embargo against Iran now seems very unlikely after Russia and China, the biggest buyer of Iranian crude, blocked UN sanctions against Syria.
Turkey imports around 200,000 barrels per day of oil from Iran, covering 30 percent of daily domestic consumption and representing over 7 percent of Iranian oil exports, and had renewed its annual purchase agreement for 2012.
Turkey follows China, India and Russia in suggesting they might ignore the sanctions and continue to trade with Tehran.
Without Asian cooperation, Western sanctions on Iran will have little effect as Iran’s top oil export destinations are Asia’s energy-hungry economies.
South Korea and Japan have indicated they are seeking to cut purchases to win waivers from US sanctions.
Last week, Sri Lanka announced it was seeking to avoid the sanctions by purchasing Iranian crude oil in a currency other than dollars.
US officials are said to be primarily concerned with transactions in dollars and this option may prove popular for countries seeking to avoid the sanctions.
NATO member Turkey has deepened economic and financial ties with Iran in recent years, despite Western efforts to isolate the country.
On a diplomatic level, Ankara often presents itself as a mediator in talks with the Islamic republic, which it sees as a balancing force in the region against Israel – the only nuclear power in the Middle East.
(Reuters, Al-Akhbar)
via Turkey to ignore Western sanctions on Iran | Al Akhbar English.