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30 November 2012 - 11:05

The situation in Iran emerged due to the sanctions imposed against it and is not so complicated that the country could not find a way out of it, Iranian Ambassador to Azerbaijan Mohsen Pak Ayeen told Trend on Wednesday.

"Over the past 33 years, including the war years (Iran-Iraq war) and after that, Iran was faced with various sanctions. This is not such a complicated thing that we could not find a way out of the current situation," Pak Ayeen said.

According to Pak Ayeen, at the same time, the opinion that sanctions have no effect is wrong. However, he said, the impact of sanctions is not and will not be the same as it seems to the West.

Imposing sanctions against the Iranian oil sector, according to Pak Ayeen, has a greater impact on Europe itself.

"When Europe has imposed sanctions against Iran, it could not find a substitution for Iranian oil which led to an increase in oil prices. This in turn contributed to an economic crisis in the European countries that we see today as well," Pak Ayeen said.

The European Union imposed sanctions which envisage cutting imports of Iranian oil and petrochemical products by EU countries in January 2012. A ban on Iranian oil imports into the EU countries came into effect on July 1. Another major package of economic sanctions was adopted in Brussels in October.

According to Pak Ayeen, the main importers of Iranian oil in Europe are Italy, Spain and Greece and each of them meet 13-14 per cent of their demand through imports from Iran. Loss of such an insignificant level of exports to these countries according to the ambassador will have no impact on the overall oil supply by Iran.

According to the Iranian Petroleum Ministry, before sanctions were imposed, oil production in the country was 3.5 million barrels per day, 2.5 million barrels of which was exported. Iran exported 450,000 barrels per day (18 per cent) of the total volume to the European countries.

As Pak Ayeen said, the oil volumes that Iran exported to Europe are currently in storage and its strategic role is increasing due to the rising demand and drop in supply on the world oil markets in the winter period.

He said the major importer of Iranian oil is China, which meets 10 per cent of its own demand through imports from Iran.

"Despite this figure, due to a greater number of population and high demand, Iran oil exports to China are significant," he said.

He underlined that China has repeatedly stated its disagreement with sanctions against Iran, as well as its intention to increase imports of Iranian oil. China currently imports over 450,000 barrels per day from Iran.

Pak Ayeen noted that India and South Africa are among other countries importing Iranian oil, who also intend to continue importing oil from Iran.

He said representatives of Turkey, which meets 51 per cent of its own demand through oil imports from Iran, stated during diplomatic meetings recently that Ankara is interested in increasing bilateral trade turnover up to $30 billion.

With regard to the recent increase in gold prices and fluctuations in foreign currency exchange rates in Iran, Pak Ayeen said that the reason for this is changing the country's economic policy on foreign exchange rates and adaptation to new conditions.

"Today, Iran's policy is directed at increasing domestic production, reducing imports and the dependence on oil and finding substitution for European economic partners. All this has caused a short term fluctuation on foreign exchange rates and rise in gold prices," Pak Ayeen said.

However, as the Ambassador said, the government controls this situation by appropriate measures.

Dollar has risen by 40 per cent compared to the Iranian rial since August 2012.

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News ID 183516