Chinese firms are investing in Iran’s oil fields; South Korea may resume oil imports from Iran; Iran slams US objection to Iran as deputy of Arms Trade Treaty Summit; India begins rupee payments for Iranian oil imports
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    • According to reports, Iranian Oil Minister, Rostam Qasem, has said that Chinese companies are now investing US$ 20 billion in Iranian oil fields in North and South Azadegan, and Yadavaran regions to increase current levels of production to 700,000 barrels per day. Several contracts have been signed over recent months to develop and exploit oil wells in 12 new oil fields. 1

    In another development, reports noted that South Korea may resume oil imports from Iran as early as next month. South Korea government has concluded tentatively that it would accept Iran’s proposal to supply oil to South Korea on its own tankers. Iran has planned to provide US$ 1 billion worth sovereign guarantees to its tankers that carry crude oil to South Korea. 2 Iran has been shipping oil to its main Asian buyers – China, India, South Korea and Japan - despite EU and US sanctions against its crude sales. 3

    Meanwhile, according to reports, three foreign envoys in Iran have said sanctions imposed by the US and the EU on Iranian oil exports will have a negative impact on the world economy. The Italian ambassador has said that the sanctions will not have any impact on Iran, but will affect the world oil market; the Vietnamese envoy reiterated this, while Brazil has said it is against unilateral sanctions against Iran. 4

    Reports noted that the Iranian representative at the United Nations has strongly reacted to US objection to the selection of Iran as deputy of the Arms Trade Treaty Summit. The US delegation harshly criticised the selection and accused Iran of “perusing "illegal" nuclear activities, deployment of arms to Lebanon's Hezbollah as well as Syria and disturbing international peace and security”. The Iranian delegation has questioned American credentials and asked UN members to judge the issue themselves. 5

    In other developments, according to reports, India has begun using its own currency to purchase Iranian oil. A member of the Federation of Export Organisations of India has said that the move will bolster trade between the two countries as Iran will need to use the rupees earned to buy goods from New Delhi. India procures about 12 per cent of its oil requirements from Tehran. India, along with countries like China, has said that it will abide by United Nations sanctions and not follow those imposed by Western countries. 6

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