Economist’s Intelligence Unit Report: Almost all of Iran’s oil exports now go to China, South Korea, Japan and IndiaJanuary 14, 2013
Oil exports make up 80% of Iran’s total export earnings and 50-60% of government revenue according to the EIU report. Iran’s government budget for the current fiscal year ending in March forecasted oil exports of 2.2 million barrels a day (b/d). The International Energy Administration (IEA) recently estimated sales of around 1.1 million b/d, resulting in monthly losses of $5 billion for Iran according to a widely cited estimate. The sanctions and the Islamic Republic’s habitual economic mismanagement have also combined to send Iran’s currency plunging in value over the last six months.
With many of Iran’s oil customers bowing to Western sanctions, Iran’s dependence on the four Asian countries has grown substantially. Tehran has become especially dependent on China, which has long been its primary trading partner. Still, China is now estimated to purchase roughly 50% of Iran’s total oil exports despite having decreased its oil imports from Tehran by 23% year-on-year through the first 11 months of 2012.
India has similarly seen its reliance on Iranian crude decline sharply, with year-on-year imports down 17% in the first 8 months of 2012. Indian officials have also suggested they plan to cut imports by an additional 10-15% in 2013.
Both South Korea and Japan reduced their oil imports from the Islamic Republic by around 40% in the first 11 months of 2012 and pledged further reductions in 2013. Seoul has implied it could decrease its year-on-year imports by as much as 20% through the first six months of this year ending in May.
A U.S. sanctions bill signed into law by President Obama on December 31, 2011 cuts off access to the U.S. financial system to any entity conducting business with Iran’s central bank—which is the country’s primary mechanism for processing oil payments—along with other large Iranian banks. The legislation does allow the Obama administration to grant three-month renewable waivers to countries that continuously reduce their crude purchases from Iran. China, India, South Korea, and Japan have been granted two waivers since the sanctions went into effect in July 2012.
much of the exchanges have been done in raw gold according to many reports. Maybe gold isn’t as effective as many hope. I thought the idea was dubious. and now the bias…
Meanwhile, it seems increasingly apparent that the Western powers do not have a well-thought out endgame for the sanctions regime, short of Iran capitulating completely. In this sense, the sanctions against Iran are not only increasingly similar to the ones imposed on Saddam Hussein’s Iraq during the 1990’s, but also to the U.S. surge in Iraq that failed to achieve its political objectives despite being militarily successful and dramatically reducing violence. Indeed, with regards to current Western strategy towards Iran, one’s tempted to invoke David Petraeus in asking: “Tell me how this ends.”
…the endgame was always bombing Iran and not sending ground troops. Or at least that is what it should be. They are trying to tell us again that we have to be responsible for the countries we attack because they are hostile. Here is the secret the media doesn’t want you to know. America doesn’t need to fix what it breaks.
The situation is only likely to worsen for Iran in the months ahead. To begin with, global energy trends and continued sluggish economic growth make it easier for Western nations to sustain the sanctions without causing a spike in energy prices.
nice to know there are benefits to my unemployment that leads me to my blog – Noah
America cannot serve two masters, she cannot keep downgrading Israel from a nation of freedom-loving people into a bargaining chip in order to satisfy any part of a political agenda that green lights the destruction of Israel.
By Stanley Zir, Never Again is Now
Although he has painted himself as a hero of freedom, in reality Obama’s foreign policy has enabled tyranny and terrorism to flourish. Perhaps he does not understand the following statements:
Fascism is the ultimate expression of absolute power; deception and the absence of accountability are its greatest allies. Since lies are the tools that fascists use to complete their circuitry of deceit, any statements issued from the leaders of these governments or their supporters can be never be believed or validated. The only thing that can be substantiated is the total absence of people’s inalienable rights.
Wake up America, the Muslim Brotherhood, a criminal enterprise that supports Hamas and the overthrow of Israel, is now your primary partner to broker peace in the Middle East. What happens when you do not challenge Obama’s foreign policy? You wave the white flag of surrender to Islam!
While Obama was traveling in Southeast Asia, half way around the globe, America‘s closest ally, Israel, was defending itself by launching an attack on Hamas.
Again‚ Obama waited before throwing Israel the proverbial crumb, “We support you all the way, ” all the way that is, until Israel launches a ground war, to finally vanquish an enemy that is determined to destroy the Jewish state.
Then Hilary Clinton flew in to broker a peace with Hamas and Israel through Mohammed Morsi.
Not one news agency at that time questioned the sanity of the Secretary of State promoting a peace agreement brokered with Mohammed Morsi, an enabler of Iran’s terrorist exploits against Israel and a champion of Hamas. On the contrary, the mainstream media praised Mrs. Clinton for achieving a cease fire agreement. “What agreement were the mainstream media so enamored with? One that would give Gaza open ports so terrorists can get more missiles in their quest to destroy Israel and provide Iran an advantage in her psychological war against the Jewish state. That, and the promise that Israel will not kill any more of their terrorist leaders. This equals suicide for Israel .
Lacking a historical overview, the Administration along with Congress, has long ignored a crucial fact concerning the reality of the enemy we face in our war on terrorism. The Muslim Brotherhood and Hamas, both terrorist organizations, are Sunni, while the Iranian population is 92 percent Shi’ite. The Sunni and Shi‘ites constantly war against each other in the name of the superiority of their God, a God who they both worship through acts of treachery and murder.
Yet, they are able to unite, despite their religious fanatical differences, when it comes to the destruction Israel, a point that Washington refuses to concede.
Tragically, they have lost sight of the fact that it is Iran that is the proverbial Alpha male of the Islamic world. Iran not only continues to hold America hostage with a threat of an economic meltdown (a manufactured threat) if it doesn’t agree to the creation of a nuclear armed Iran, but many of Iran’s immediate neighbors in the Arab League are also petrified at the thought of Iran becoming a nuclear armed terrorist state.
Iran and Iran alone is the epicenter of the ideology of Islamic supremacism and Israel eradication, not the Muslim Brotherhood, Syria, not Afghanistan, Yemen, nor Al- Quaida and the rest.
Iran is the standard bearer for global sharia law advocacy. Her terrorist tentacles reach far beyond the Islamic world to South America, South Africa China, Korea, Russia, Europe, Africa, and the UN; all are now part and parcel of their war on America, Israel, and the West.
The fact is that Iran’s Revolutionary Guard and their terrorist surrogates actively attack and kill American and Israeli citizens and soldiers around the world.
The bad news for Obama (and also for Israel and America), is that Egyptian President Morsi, who shares Iran’s determination to destroy Israel, has seized absolute power, dismissed the judiciary, and established a fascist Islamic constitution whose approval will be sought in a nationwide referendum. Unfortunately for the people of Egypt, the outcome has already been pre-determined by Morsi.
Where is Barack Hussein Obama, the hero who stood for freedom in Egypt and the Islamic World?
He said that Americans must respect the rights of the Islamic people and that their voices must be heard. Why is Obama hesitating? Why is he not asking Morsi, like Mubarak before him, to to step down? Isn’t there more than enough proof that Morsi is a dictator, or does Obama believe that the Muslim Brotherhood and their partner in crime, Ahmadinejad, can be honest brokers for peace in the Middle East?
But a larger question looms, where is the GOP, why are they not launching a national campaign to demand why Obama does not make his intentions known to the American people concerning Mohammed Morsi’s status.
If the leader of the free world does not emphatically declare what America stands against in all circumstances, then for what do we stand, and with whom? Certainly not those Egyptian people who are now again claiming they want to be a tyranny-free nation, not one that was hijacked by the Muslim Brotherhood though free elections.
Obama’s foreign policy follows a distinct pattern of behavior when dealing with the uprisings in the Islamic world. His commitment to giving support to those who are leading the charge, changes in direct proportion to those who are guaranteed to win.
In Egypt, it was only after Obama knew that Mubarak would fall, that Obama announced to the world he was calling upon the people of Egypt to overthrow their oppressor. In this case he was not willing to support the perceived victim until the outcome appeared guaranteed.
What he never committed to in the Arab Spring was a foreign policy that insists that a constitutional government be implemented that opposes tyranny, if they wish to continue to receive financial support even if it is not the will of the victors in a free election.
Obama manages to shuck his responsibility as the leader of the free world when it suits his purpose, proclaiming America will not interfere in the internal affairs of any nation, especially in the Islamic world. Ironically, now the people of Egypt are demanding that Morsi step down after free elections, but will Obama get involved as he did with Mubarak?
The protesters who have now taken to the streets against the Muslim Brotherhood may provide the ultimate solution against Islamic fascism, for they might be the first generation of Muslims to accept a guaranteed separation from a mosque/state tyrannical enclave through a democratic constitutional state mandate.
Will Egypt finally adopt the political ideology that America ‘s Founders designed that can end sectarian slaughter, by redirecting the people’s allegiance from religious fanaticism to one that protects everyone’s inalienable rights? This is the front line of defense that the Islamic world must adopt if they are to be free from tyranny’s hateful grip, and America ‘s Constitution fits the bill.
This is a chance that we must not squander and the GOP must take the lead, this is the opportunity for them to reestablish American’s identity as to why she is the nation among all nations that was created to bring about a peaceful co-existence among mankind.
The question becomes, how can the GOP support an American president who champions a foreign policy that aligns America with nations and political movements that are determined to eliminate our precious rights in Allah’s name?
Simply put, Obama paints America , the defender of freedom, as though she is the greatest offender. He treats Iran, the Muslim Brotherhood and the rest of these renegades as if they were the victims of America ’s aggression, as if they need some special consideration, as if invasion, conquest, and nation building with the global jihad are somehow a defensive posture, an appropriate response to America ‘s foreign policy.
And the Obama Doctrine, “Terrorists are R’ U.S. ” completely exemplifies this erroneous position. For it is a foreign policy that contends that America ’s greed, racism, and exploitation of the Islamic nations is responsible for their hatred against us, not Islam’s addiction to tyranny’s hateful edicts and the murder of millions of innocent people over the last 1300 years.
America cannot serve two masters, she cannot keep downgrading Israel from a nation of freedom-loving people into a bargaining chip in order to satisfy any part of a political agenda that green lights the destruction of Israel- in the hope of establishing a peaceful co-existence with the oil-rich tyrannical nations of the Arabian Peninsula. Yet, that is exactly what is being done. This is a policy that not only dooms Israel to extinction, but will lead to the destruction of the moral fiber that binds America to its own humanity.
The GOP must emphatically declare its independence from the dictates of Obama‘s foreign policies which now bind our nation to tyranny’s diabolical edicts. They must commit to defending our nation from enemies both foreign and domestic, but it seems they cannot walk and chew gum at the same time.
If Americans are joined at the hip with the Muslim Brotherhood, how can we stop Mahmoud Ahmadinejad who must not be given the opportunity to accomplish his unequivocally-announced and pursued goal: a nuclear armed terrorist state.
America needs a new guideline; she needs a new point of departure, one that once again honors her nation’s eternal stance against the advancement of global tyranny. She must immediately embark on this new path, for it guarantees America ’s victory over those who have compromised our core beliefs at home and abroad.
America needs a Victorious America party.
(other) “Sanctions that Benefit” – Iran buys Turkish gold via UAE, economists say.(HD).Turkey’s trade deficit fell 30 percent in August, reportedly on the back of strong gold sales to Iran even though the United Arab Emirates was the leading gold buyer from Turkey in the given period. The trade deficit fell to $5.86 billion, according to the Turkish Statistical Institute, compared with a $7.89 billion deficit in July and a forecast of $8.10 billion in a Reuters poll. “This data is a result of soaring gold exports, which broke a record with $2.3 billion in August,” Oyak Securities economist Mehmet Besimoğlu said on Sept. 28. “Gold exports were generally to Iran, made via the United Arab Emirates.” Turkish gold sales to Iran have soared as Iranians turn to the precious metal to protect savings and, potentially, to trade, as Western sanctions aimed at forcing the Islamic republic to curb its nuclear program tighten. Some trader firms also speculated that gold to the UAE might be for Iran in deed. As a whole, Turkey’s gold exports jumped more than fourfold to $11.2 billion in the first eight months of 2012. Overall exports to the UAE jumped eightfold to $2.23 billion, making it Turkey’s largest export destination in August. “The lower-than-expected August trade deficit was mainly due to the slowdown in domestic economic activity and net gold exports,” researchers from local lender TEB said. Exports rose 14.5 percent to $12.87 billion, as growing trade with markets in Africa and the Middle East eclipsed a slowdown in demand from Europe. Imports fell 4.8 percent to $18.74 billion.Hmmmm……Sanctions that benefit Obama’s BFF Turkey.Read the full story here.
boggles the mind. Iran and Turkey are at each other’s throats… but with a middleman they do business. They say Mohammad was a merchant. I wonder if he had a setup like this with the enemy.
(Iranian charitable trusts control an estimated 20–40% of Iran’s GDP. Subsidized by the government,)(American Thinker)Bonyads provide plenty of strategic and tactical advantages to anyone willing to do business with Iran. Not only does the Iranian Supreme Leader control the Bonyads, but allies in Venezuela and even Argentina and Brazil have been known to implement and adhere to Iranian Bonyad ventures. In Venezuela alone, there are at least ten manufacturing plants whose shareholding distribution is 49% Iranian businesses connected with Bonyads, leaving 51% within the Venezuelan state.
Tactically, Bonyads are often related to the Iranian Revolutionary Guard Corp (IRGC). Operatives from the IRGC along with members of Al-Quds and Hezbollah go undercover, portraying themselves as employees or officials of trading companies, banks, and cultural centers, or as representatives for the Foundation of the Oppressed and Dispossessed (Bonyad-e-Mostazafan), or the Martyrs Foundation.
How serious is Venezuela’s Bonyad approach? Note the executive board members within their Banco Internacional de Desarrollo — Rahim Faramarzi, Kourosh Parvizian, Reza Raei, Parvin Tavallaeizadeh, Samad Vafaee, Mohsen Bolhasani, Ssan Shokrian. Of note, all of these directors are Iranian. Their backgrounds make them out to be high-profile businessmen, but some are known either to have previously operated or to currently operate directly for the Iranian Revolutionary Guard Corp.
If the United States intends on imposing sanctions on Iran, it will need to impose such sanctions on Venezuela as well, along with a handful of other nation-states and privately owned global banking industries. Needless to say, this won’t happen — and such a move would not be successful anyway, considering how the Bonyad systems work.
Bonyads are funded both actively and passively. Islamic almsgiving, known as Zakat, often flows into Bonyads. The mysterious Islamic Hawala system has been known to funnel money into established Bonyads as well.
Hawala, for its part, is an informal underground monetary transfer system. Think of Western Union on steroids, but without any oversight. Completed 100% on trust, Hawala involves money exchanges among multiple entities. Some players need money now, others loan the money, an intermediary handles the transactions, and interest is paid through monetary means or through goods and services. The system never ends because payments must be made to those in need and to those who loan.
The assets of many Iranians whose ideas or social positions ran contrary to the new Islamic government were also confiscated and given to the Bonyad without any consequence.Today, there are over 100 Bonyads, and they are criticized for many of the same reasons as their predecessors. They form tax-exempt, government subsidized, consortiums receiving religious donations and answerable directly (and only) to the Supreme Leader of Iran. The Bonyads are involved in everything from vast soybean and cotton fields to hotels to soft drinks to auto-manufacturing to shipping lines. The most prominent, the Bonyad-e Mostazafen va Janbazan, (Foundation for the Oppressed and Disabled), for example, “controls 20% of the country’s production of textiles, 40% of soft drinks, two-thirds of all glass products and a dominant share also in tiles, chemicals, tires, foodstuffs.” Some economists argue that its chair, and not the Minister of Finance or president of the Central bank, is considered the most powerful economic post in Iran.In addition to the very large national Bonyads, “almost every Iranian town has its own bonyad”, affiliated with local mullahs Estimates of how many people the bonyads employ ranges from in excess of 400,000 to “as many as 5 million”.
Sanctions to force Iran to curb its nuclear program have targeted its energy and banking sectors and new measures from both the United States and European Union take effect in July, aimed at strangling Tehran’s foreign earnings.
The sanctions have made neighboring Turkey an ever more important channel for the Islamic republic.
Data from Turkey’s Statistics Institute yesterday showed gold exports to Iran rose to nine tons, worth $480 million, in March, from 286 kg a year earlier and compared to just 30 kg in February this year.
They were the highest monthly exports to Iran since records started in 2010. Total gold exports were 11.1 tons in March.
“It wouldn’t be wrong to say Iran chooses Turkey for gold imports because of embargoes,” said Gokhan Aksu, vice chairman of Istanbul Gold Refinery, one of Turkey’s biggest gold firms.
“Iranians prefer jewels and precious stones to protect the value of their money and escape instability,” he told Reuters.
I’m sure Iran is going to stop developing nuclear weapons immediately because of these very tough sanctions.
What could go wrong?
no wonder the Iranians went Gaga for Ron Paul