Azerbaijan, Baku, Sept. 19 / Trend, N. Umid, S. Isayev
The sanctions that were lifted a few days ago against Iran Shipping Lines Company (IRISL) is useless for country's imports, board member of Iran's Chamber of Commerce, Industries and Mines, Masoud Daneshmand said, Iranian Shargh newspaper reported.
"Despite the lift of sanctions, transporting goods to Iran would continue to face problems," he said.
On September 17, The European court made a decision to lift the EU sanctions against Iranian leading shipping company IRISL(Islamic Republic of Iran Shipping Lines).
EUObserver reported that "On Tuesday, the Court of Justice decided to lift the sanctions against Iran's biggest shipping line IRISL, explaining that the EU has not provided evidence of its complicity in the alleged Iranian program to develop nuclear weapons".
After the announced decision, some Iranian officials expressed joy and hope regarding the court's decision.
IRIB quoted Iran's Ports and Maritime Organization director Ataollah Sadr as saying shipments to Iran will increase as sanctions against the country's shipping line have been annulled.
Daneshmand explained that while IRISL was sanctioned, the goods were being transported to Iran's ports through Turkey, UAE, Georgia, and later Oman, using smaller ships which imposed some extra $40 to $100 of costs per ton for Iranian traders.
Such transportation method also took more time to execute - prior to sanctions, the goods used to arrive in Iran within 3 weeks, while after IRISL was sanctioned, the timeframe increased to 3 months.
"Lifting sanctions against IRISL can only decrease the imported goods` prices in Iranian markets by 10 percent, because foreign currency shortage problem has not been resolved yet," Daneshmand explained.
"Iran's Central Bank cannot use country's currency reserves, it cannot even transfer petrodollars to Iran due to sanctions," he said.
Daneshmand went on to say that the problem with transporting goods to Iran would be solved if sanctions against Iran's bank system are lifted as well.
Aside from sanctions related to Iranian banks, there is another issue, which doesn't permit IRISL to work freely now after the lift of sanctions.
It should be noted that IRISL has previously only worked with Tidewater Middle East Co. - another shipping company, for bringing goods to Iran's ports.
"Unlike IRISL now, Tidewater Middle East Co. is still under U.S. sanctions, and thus the business of IRISL is limited to only 25 percent of 2,8 million of imported containers. The rest of the percentage belongs to foreign shipping companies," Daneshmand explained.
In 2011, the US Treasury Department said that Tidewater Middle East Co. manages key Iranian ports, and its facilities were used by Iran's Islamic Revolutionary Guard Corps for illicit shipments of arms in violation of UN Security Council resolutions.
"If any foreign company cooperates with Tidewater will be sanctioned by the United States. So no foreign company is willing to do that," Daneshmand said. "Until IRISL replaces Tidewater with another transport companies the problems will remain."
He underscored that if IRISL replaces Tidewater with a government-owned company, in the future this company may get sanctioned by the United States.
