Iranian Oil Export Receipts Fall to Zero, Central Bank Says
Iranian oil exports have fallen to zero amid the war and sanctions, the governor of Iran’s Central Bank said, noting that the authorities had made preparations to manage the resulting loss of revenue.
“There is no doubt that we face restrictions on oil exports. I also spoke with the Iraqis and Qataris; their revenues from oil sales have fallen to zero. The same has happened to us, and it is a reality that we are not exporting oil,” Abdolnaser Hemmati said in a televised interview.
He said the government and Central Bank had made necessary preparations for such a situation.
Hemmati said the difference between Iran as compared to Iraq and Qatar is that the latter two countries can access their central bank reserves, while Iranian foreign currency reserves have been blocked by the US.
“The Americans have frozen our foreign currency reserves and do not allow us to withdraw them,” he said. Hemmati also said Iranian funds that were expected to be released under the framework peace agreement Tehran reached with Washington in June – the Islamabad Memorandum, designed to pave the way for a final deal that has not yet materialized – have yet to be freed.
“The issue of the Islamabad understanding and the release of resources is a separate matter. The resources that were supposed to be released under this understanding have not yet been released,” he said.
Turning to his recent visit to Iraq, Hemmati said Iran has strong political and economic relations with its neighbor.
Before the war, Iran exported $12 billion worth of goods and services to Iraq annually, including $4 billion related to the Iraqi government, such as gas and electricity, and $8 billion involving the private sector, he said.
Hemmati said Iraq has pledged to address outstanding payments owed to Iran, while noting that Baghdad is itself facing difficulties due to the closure of the Strait of Hormuz and disruptions to oil revenues.
He said discussions have been held on facilitating the transfer and use of Iranian funds held in an Iraqi bank, adding that Tehran expects improvements.
Hemmati also said that during a meeting with the Iraqi prime minister, the two sides agreed to work on using resources at the Trade Bank of Iraq to provide backing for guarantees issued to Iranian contractors operating in Iraq.
The Iraqi prime minister approved the proposal and issued instructions to facilitate the measure, he added.
US sanctions have long targeted Iran’s oil exports and access to international financial channels, with Washington seeking to restrict Tehran’s main source of foreign currency revenue.
Hemmati’s remarks came amid renewed military tensions between Iran and the US following the breakdown of arrangements under June framework deal and the resumption of hostilities between the two sides. Esso Nigeria Announces Drillship Arrival as Usan Infill Project Enters Execution Phase
