Tag: Iran

After EU sanctions take effect from July Hong Kong maritime insurers will not provide full cover to tankers carrying Iranian oil after EU sanctions take effect from July, a senior industry official told Reuters, another blow to Chinese importers struggling to find ways around the measures. As more insurers confirm they will soon halt or sharply reduce coverage to tankers operating in Iran, China's government may need to step in and take the risk to get contracted crude supplies from Tehran, said Arthur Bowring, managing director of the Hong Kong Shipowners Association. China is the top buyer of Iranian crude.Bowring's comments come days after officials at China's P&I club, which covers more than 1,000 ships, told Reuters the insurer would not extend cover to tankers carrying Iranian oil when the new EU sanctions come into force. "For the liability coverage that we now need, the reinsurance is essential and that comes from the international market, which of course is affected by the sanctions," said Bowring.The association represents shipowners who receive insurance coverage for more than 2,000 ships. Reinsurance helps spread the risk when the coverage surpasses what commercial insurers can handle. The EU sanctions on Tehran will close off the ...

There are over 11000 navy men in the Indian ocean to counter piracy attacks

Iran stopped shipping oil to Greek refiners Iran stopped shipping oil to Greece and may halt supplies to Royal Dutch Shell PLC (RDSB.LN, RDSA, RDSB) over unpaid bills, Iran media said Friday, as the impact of sanctions widens. The news suggests a decline in Iranian oil exports last month may accelerate as banking sanctions add to an upcoming European ban on Tehran oil. That could lead to upward pressure on oil prices, which have recently surged to a four-year high.The Mehr news agency said that, due to unpaid bills, Iran stopped deliveries to Greek refiners Hellenic Petroleum (ELPE.AT) and Motor Oil (MOH.AT). Greece has long been the European Union country relying the most on Iranian oil--sometimes for as much as a third of its supplies.A spokesman for Motor Oil confirmed it had stopped buying Iranian oil and had found replacements.The Mehr agency said Tehran may also cut shipments to Anglo-Dutch giant Shell because it hasn't paid for consignments equivalent to 8 million barrels since the beginning of 2012. It said Shell has already halved its Iran oil shipments to 100,000 barrels a day."If the situation continues, Iran could cut oil exports to Shell as it has to the Greek companies ...

The EU has now issued the anticipated implementing regulation The EU has now issued the anticipated implementing regulation (No 267/2012) envisaged in its Council Decision 2012/35/CFRSP of 23 January 2012. The regulation is effective from 24 January 2012, and applies directly within the EU without the need for further implementing legislation. It updates some existing restrictive measures against Iran and imposes the anticipated ban against Iranian crude oil and petroleum and petrochemical products.ApplicationThe regulation applies:(a) within the territory of the Union, including its airspace;(b) on board any aircraft or any vessel under the jurisdiction of a Member State;(c) to any person inside or outside the territory of the Union who is a national of a Member State;(d) to any legal person, entity or body, inside or outside the territory of the Union, which is incorporated or constituted under the law of a Member State;(e) to any legal person, entity or body in respect of any business done in whole or in part within the Union.It also includes prohibitions against attempts to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the measures in the regulation.General trade restrictions on exports and importsThe regulation does not ...

Indian oil buyers are asking Iran to bear the insurance risk for transporting its crude Indian oil buyers are asking Iran to bear the insurance risk for transporting its crude as tighter Western sanctions make it more difficult to buy Tehran's principal export, industry sources said on Wednesday.The number of maritime firms willing to transport Iranian crude has dwindled significantly since the European Union announced in January it would proceed with an oil embargo, leaving Asian oil buyers to rely more on Iranian-owned tankers.With Indian shipping firms uncertain whether they can continue transporting Iranian oil, state-run Indian Oil Corp and Hindustan Petroleum Corp have written to the National Iran Oil Corp (NIOC) asking the company to take on the insurance risk for their crude shipments, two industry sources said.NIOC has indicated it may consider the request on a case-by-case basis, the sources said.The United States has also imposed tougher sanctions against Iran for its disputed nuclear programme, prompting Japan and 10 EU nations to significantly cut purchases of Iranian crude oil in order to win exemptions.Washington, however, has left Iran's top customers China and India exposed to the possibility of such steps.The EU agreed to an oil embargo on Jan. ...

EU and other countries laws are in a state of flux The EU implementing Regulation following the EU Council Decision of 23 January 2012 is still awaited. It is likely to have wide ranging effect and will address the imposition of a ban on the import, purchase or transport of Iranian crude oil and petroleum and petrochemical products. It is also likely to prohibit the provision, directly or indirectly of finance, insurance or reinsurance related to such import, purchase or transport.There has been widespread press comment upon the implications for non-EU tanker owners and third parties if such a ban is imposed. In line with other EU laws it is probable that it will prohibit the participation, knowingly or intentionally in activities the object or effect of which is to circumvent the above prohibitions. A recent EU court judgment has demonstrated that the court is likely to adopt a wide interpretation of restrictive measures imposed against Iran or other states.On 18 February 2012 a judgment by the European Court was issued in relation to an earlier Regulation imposing restrictive measures against Iran to prevent nuclear proliferation (Regulation 423/2007). That Regulation entered into force in April 2007. Since then further Regulations ...

Key Points to Consider from the International Group In response to the recent European Council Decision 2012/35 the International Group is continuing to play an important role in lobbying the European Commission. The 'Key Points to Consider' have been distributed to the European Commission to educate EU Member States as to the potential impact in order to help inform their views and negotiating position in respect of a possible exemption from the insurance prohibition.Council decision 2012/35 in its present form is not binding upon any individuals or entities. However this will change once the EU issue a Regulation implementing the decision which is expected in the coming weeks. All members are recommended to closely monitor the position. Whilst the implementing Regulation will have direct effect in the EU and on EU entities, there are also likely to be ramifications for the insurance arrangements of non-EU members.Source: The Standard P&I Club

Asian oil importers to rely on domestic firms for OPEC shipments Indian shipping firms will find it difficult to obtain replacement insurance coverage to continue importing Iranian crude oil after new European Union sanctions come into effect, industry sources said.State-run Shipping Corporation of India, the largest tanker owner in the country, will lose EU insurance coverage for its oil tankers operating in Iran from July 1, when European insurers will be prohibited from indemnifying ships carrying Iranian oil.Indian maritime firms are likely to be the most affected in Asia by the sanctions, as the other two big buyers of Iranian crude, China and Japan, do not rely on European insurers but are covered by domestic providers.India, China and Japan are Iran's three biggest crude oil buyers."We are covered by P&I clubs in the EU," Sunil Thapar, director at Shipping Corp of India told Reuters, referring to customer-owned maritime protection and indemnity insurance groups."These clubs will not be able to give us coverage for vessels to Iran from July. It will be difficult for Indian shipping lines to transport Iranian crude unless alternative arrangements are made," he said. SCI owns 39 oil tankers.FEWER OPTIONSA.P. Moller-Maersk, Singapore-based Samco Shipholding, and many other ...

Shipping oil from Iran to Europe is becoming increasingly difficult Shipping oil from Iran to Europe is becoming increasingly difficult, despite the fact that a full oil embargo does not come into effect until July 1, as increasingly tight sanctions from the U.S. and European Union are causing major shipping companies to avoid business with the country.Shipping giants AP Moller Maersk A/S (AMKBY), Frontline Ltd. (FRO) and Teekay Tankers Ltd. (TNK) have all said their ships will no longer call at Iranian ports, while some smaller shipowners have also said they are unwilling to send their vessels to the Islamic Republic to lift crude."We have stopped having our ships call at Iran," said Jens Martin Jensen, Chief Executive of Frontline Management AS, a subsidiary of Frontline responsible for overseeing the companies commercial affairs."We are just following the sanctions, we have no interest in doing business with Iran," he added.The EU imposed new sanctions on Iran on Jan. 23, ratcheting up pressure on the Islamic Republic, although a full ban on oil exports from the country will not come into affect until July 1.Still, for many shipowners the new sanctions are already becoming too onerous, pushing up insurance premiums and requiring ...

The U.S. Navy able to prevent from blocking the Strait of Hormuz Iran has built up its naval forces in the Gulf and prepared boats that could be used in suicide attacks, but the U.S. Navy can prevent it from blocking the Strait of Hormuz, the commander of U.S. naval forces in the region said on Sunday.Iran has made a series of threats in recent weeks to disrupt shipping in the Gulf or strike U.S. forces in retaliation if its oil trade is shut down by sanctions, or if its disputed nuclear program comes under attack."They have increased the number of submarines ... they increased the number of fast attack craft," Vice Admiral Mark Fox told reporters. "Some of the small boats have been outfitted with a large warhead that could be used as a suicide explosive device. The Iranians have a large mine inventory.""We have watched with interest their development of long range rockets and short, medium and long range ballistic missiles and of course ... the development of their nuclear program," Fox, who heads the U.S. Fifth Fleet, said at a briefing on the fleet's base in the Gulf state of Bahrain.Iran now has 10 small submarines, he ...