The Trade embargo on Iran

Lucie Jezlová Kateřina Sachunská Julia Ustinova

The Trade embargo on Iran • the end of 2011 – USA declared extended sanctions against Iran -> followed by EU next year • 23rd January – EU decided to declare an embargo on Iranian oil What the trade embargo means? • EU countries – no NEW contracts for the import of Iranian oil • earlier agreement aren‘t canceled until 1st July .

two opinions: Teheran: uranium processing programs are used exclusively for peaceful purposes x The West: worried that Iran is trying to build a nuclear weapon => stricter measures will help reduce or stop Iran's nuclear research => sanction against Iran‘s central bank => the financing of Iran's nuclear program more difficult .The uranium processing program The trade embargo is result of: • several years dispute over the controversial Iranian nuclear program • during December and January again escalate = > because of testing two long-range missiles by Iran Two worlds .

• EU = 20% of Iranian oil production • Asia = the most of Iranian oil • China = major importer • China isn’t going to join the embargo • US and EU => is trying to persuade Asian countries (especially India) to reduce imports from Iran • Supplies from Iran -> replaced by the oil from other countries in the Persian Gulf Reaction of Iran .closing of the key Strait of Hormuz through which 40% of world's oil is transported .

42 2.necessary to replaced • Saudi Arabia (the biggest world exporter) Country Saudi Arabia Iran Iraq Million barrels per day 9.53 2.What it means for the states of the EU? • European Union imports from Iran 450 000 barrels oil per day. it’s 20% of Iranian exports • There will be a gap .67 United Arab Emirates Venezuela Kuwait 2.53 2.26 .34 3.

most of oil from Iran.What it means for the states of the EU? • clossing the Streit of Hormuz could limit the supply of oil from Saudi Arabia • high prices of oil • countries in Sousth of Europe . concluded advantageous contracts .

It negatively affected all Iranians • India and Chine – opportunity to be stronger • India's oil minister: Sanctions were forcing Iran to sell more cheaply and that India planned to take full advantage of that to buy as much as it could. new buyers of Iranian oi • However!! Lower prices .The effect on Iranian economy… • 80% of Iranian income come from oil exports • The EU is the second-biggest customer • Teheran: we’ll find new market. .

Thank you for your attention.  .

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