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Russia rejects EU plan to ban Iran oil
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Thursday, 08 Dec 2011
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Banning Iranian oil sales would be a political move and Russia does not believe energy supplies should be used to exert pressure.

Mr Guenther Oettinger European Energy Commissioner said that there was consensus among some EU countries to ban imports of Iranian oil and that Europe hoped to bring Russia on board in a global ban. But the world's biggest crude oil producer which does not import any Iranian crude, is unlikely to back the plan aimed at piling pressure on Iran to drop its disputed nuclear program.

Mr Sergei Shmatko energy minister of Russia said that it is quite obvious that this decision is based on some political motivation. In these situations we try to be as neutral as possible. Do you realize the impact of this decision once it is made?

Some EU countries are worried that a ban on imports of Iranian oil could damage their own fragile economies more than it would Iran's.

The secretary general of oil exporting group OPEC of which Iran is a leading member said that European countries which together import 450,000 barrels per day of Iranian oil would struggle to find alternative supplies in the event of a ban.

The three leading EU importers of Iranian oil Italy, Spain and Greece are also at the centre of Europe's sovereign debt crisis. Having to find alternative supplies of potentially pricier oil than their regular Iranian crude could intensify their economic problems by fuelling inflation.

Mr Shmatko said that rather than banning oil sales, countries concerned about Tehran's nuclear plans which many governments suspect includes a weapons program should seek a diplomatic resolution to the conflict.

He said that as far as the nuclear program of Iran is concerned we try to discuss these issues in other forums, for example the UN security council.

(Sourced from Reuters)

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