Russian Gas Company Defies Sanctions against Iran
News number: 8909240296 15:26 | 2010-12-15
http://english.farsnews.com/newstext.php?nn=8909240296

TEHRAN (FNA)- Russia's gas company Gazprom reiterated its readiness to defy
the unilateral and international sanctions against Iran and continue energy
cooperation with the country.

Head of Gazprom Neft, the oil arm of Gazprom, Alexander Dyukov said that the
Russian firm plans to carry on working with the Iranian government.

"The company continues holding negotiations over two Iranian oil fields, but
so far, the parties have not reached any agreements," he added.

Last November, Gazprom Neft and the National Iranian Oil Company signed a
memorandum of understanding to collaborate in the development of oil fields
and to study the development of two other Iranian oilfields, Azar and
Changule.

The United States and its allies accuse Iran of pursuing a military nuclear
program and have used their influence on the UN Security Council to press
for fresh sanctions against Tehran.

Iranian officials have repeatedly refuted the accusations, arguing that as a
signatory to the Nuclear Non-Proliferation Treaty and a member of the
International Atomic Energy Agency, Tehran has the right to use peaceful
nuclear technology.

Gazprom Neft is the fifth largest oil producing and refining company in
Russia.

Earlier reports also siad that the French and Italian oil companies, Total
and API, as well as Shell, an Anglo-Dutch oil giant, have bought more crude
oil from Iran despite tougher sanctions imposed against the country by
certain states.

Shell was reported in September to have increased oil trade with Iran at a
time when other major buyers, including BP and Reliance Industries, India's
largest conglomerate, halted orders due to sanctions.

According to sensitive trading documents obtained by the Guardian newspaper,
Shell paid the state-owned Iranian oil company at least $1.5 billion for
crude oil this summer.

Following the latest round of UN and EU sanctions this year, William Hague,
the British foreign secretary, reaffirmed that the UK does not encourage
trade with or investment in Iran because of 'serious concerns about the
nature of Iran's nuclear program'.

But, according to the Guardian, Shell has insisted it is doing nothing
illegal. 'We do not comment on our trading activities but would underline
that we continue to comply with all legislation,' a spokesman said.

The increase comes despite oil traders reportedly saying it has became
harder for buyers to obtain letters of credit from banks required to
complete transactions with Iran and with insurers reluctant to cover cargoes
for fear of falling foul of US sanctions.

Data shows French and Italian oil companies, Total and API, also defied
sanctions by lifting more Iranian crude between May and August than in the
previous three months, up 12% and 70% respectively.