• Tuesday, July 16, 2019

China Restarts Purchases of Iranian Oil, Bucking Trump’s Sanctions

Discussion in 'China & Far East' started by Dinky, May 17, 2019.

  1. Dinky

    Dinky FULL MEMBER

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    China Restarts Purchases of Iranian Oil, Bucking Trump’s Sanctions
    [​IMG]
    On the same day that Iranian foreign minister Javad Zarif traveled to Beijing for talks on "regional and international issues,” the Chinese oil tanker PACIFIC BRAVO began traveling eastward, having loaded approximately 2 million barrels of Iranian oil from the Soroosh and Kharg terminals in the Persian Gulf over the past few days, according to analysis provided by TankerTrackers.com.

    PACIFIC BRAVO is currently reporting its destination as Indonesia, but the tanker was recently acquired by Bank of Kunlun, a financial institution that is owned by the Chinese state oil company CNPC. TankerTrackers.com believes China is the ultimate destination for the oil on board.

    PACIFIC BRAVO is the first major tanker to load Iranian crude after the Trump administration revoked waivers permitting the purchases by eight of Iran’s oil customers. The revocation of the waivers, which sent shockwaves through the global oil market, was a major escalation of Trump’s “maximum pressure” campaign on Iran.

    The purchase of Iranian oil in the absence of a waiver exposes the companies involved in the transaction—including the tanker operator, refinery customer, and bank—to possible designation by the U.S. Treasury Department, threatening the links these companies may maintain with the U.S. financial system.

    Bank of Kunlun has long been the financial institution at heart of China-Iran bilateral trade—a role for which the company was sanctioned during the Obama administration. Despite already being designated, Bank of Kunlun ceased its Iran-related activities in early May when the oil waivers were revoked. PACIFIC BRAVO’s moves point to a change in policy.

    China-Iran trade slowed dramatically after the reimposition of U.S. secondary sanctions in November, suggesting the Chinese government had chosen to subordinate its economic relations with Iran to the much more important issue of its ongoing trade negotiations with the United States. But these negotiations have since broken down. This week, President Trump announced plans to impose tariffs on a further $300 billion in Chinese imports in addition to punitive measures against Chinese telecommunications giant Huawei, which has been targeted in part for its alleged violations of Iran sanctions.

    These announcements stoked anger in China, which has vowed to fight back. Last week, foreign ministry spokesman Geng Shuang told reporters that China “resolutely opposes” unilateral sanctions on Iran. But until now, there had been little evidence that the Chinese government was encouraging its companies to ignore or evade U.S. sanctions in the interest of maintaining trade with Iran. While Chinese multinationals will likely remain wary of trading with Iran due to the risks posed to their increasingly global businesses, China’s apparent decision to use state-enterprises to purchase at least some Iranian oil represents a direct and significant challenge to U.S. sanctions. Earlier this week, Trump trade advisor Peter Navarro singled out China’s sanctionable activities in Iran’s metals industry in a Financial Times op-ed. With this kind of messaging, the Trump administration has made it impossible for China to keep the trade war separate from its disagreements with the United States over Iran sanctions.

    For Iran, China’s decision to continue to purchase at least some Iranian oil could prove a vital lifeline as it struggles to withstand the Trump administration’s “maximum pressure” sanctions campaign. The failure of Europe, China, and Russia—the remaining parties of the Iran nuclear deal—led Iran to announce last week that it would begin to reduce its compliance with parts of the Joint Comprehensive Plan of Action (JCPOA) in 60 days.

    Iran’s announcement greatly concerned European officials who have urged continued compliance with nuclear commitments under the JCPOA. In private, European officials acknowledge that the decision by the Trump administration to revoke the oil waivers was a significant escalation to which Iran was compelled to respond. Noting that economic pressures are fueling political opposition to the JCPOA in Tehran, European officials have been urging Chinese and Russian counterparts to do more to support bilateral economic ties with Iran. Dispatching PACIFIC BRAVO may be just the first step.

    https://www.bourseandbazaar.com/art...hases-of-iranian-oil-bucking-trumps-sanctions


     
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  2. Han Patriot

    Han Patriot SENIOR MEMBER

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    Where is that smart Indian who said we won't buy Iranian oil?
     
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  3. Indus Pakistan

    Indus Pakistan ELITE MEMBER

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    Where are the 'not so smart Indian' who said they would not bend to US pressure?
     
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  4. Enigma SIG

    Enigma SIG FULL MEMBER

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    China would be expected to take it's gloves off after the Huawei affair.
     
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  5. HammerHead081

    HammerHead081 FULL MEMBER

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    Can China buy oil from Iran and then sell it to us? This way we don't get sanctioned by US since we aren't directly buying oil from Iran.
     
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  6. Viva_Viet

    Viva_Viet SENIOR MEMBER

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    anyone know where is the ship now ?? in ID yet ??
     
  7. Han Patriot

    Han Patriot SENIOR MEMBER

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    Exactly the first to bend over was India. Even when the Venezuelan sanctions haven't kicked in they already started to reduce Venezuelan oil. No wonder the west loves them, so easy to dominate. Modi is so desperate to please Trump.
     
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  8. Feng Leng

    Feng Leng SENIOR MEMBER

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    The Iranians should not be surprised: when Anglo master says "bend", India asks "how low?"
     
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  9. Navigator

    Navigator FULL MEMBER

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    This tanker only recently left the Iranian terminals and now sails in Persian Gulf to Hormuz strait
     
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  10. Han Patriot

    Han Patriot SENIOR MEMBER

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    What do you expect. There is an Indian keep on arguing with me to prove to me China will not buy Iranian oil. Very desperate to prove that China is just as cowardly like India. hahhahahaha. Not sure where is he hiding now. They have an extreme facesaving inferiority complex, they cannot lose an argument, even if they are wrong, never admit mistake and learn.
     
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  11. 925boy

    925boy BANNED

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    If you make a friendly brother request i'm sure China will try and help you guys. lol.
     
  12. 055_destroyer

    055_destroyer FULL MEMBER

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    @Tejas Spokseman

    Care to elaborate? Or you are hiding and too embarrass to answer since now proven India is lackey while China is a real superpower.

    China will sell at market price to other buyers but the price China buys from Iran is probably 20-30 percent off market price.
     
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  13. Han Patriot

    Han Patriot SENIOR MEMBER

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    All Indians can talk, all talks as if they know everything and all can predict the future. Yet with all these superpowers, India is still a shithole. The people defines the country, it's a country where they talk and talk and talk and nothing gets done.
     
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  14. 055_destroyer

    055_destroyer FULL MEMBER

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    @Tejas Spokseman

    He says your country is XXXX-hole. You always claim India is superpower. You need to define this statement. Don't hide inside your tortoise shell, come out and prove your Tejas super power.
     
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  15. Pubg1

    Pubg1 BANNED

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