Iran's Oil Sector Prepares for Possible Return of UN Sanctions, Says Minister

Iran’s Oil Minister Mohsen Paknejad has stated that Tehran is preparing for a scenario where the United Nations sanctions are re-imposed, as part of efforts by European powers to pressure the Islamic Republic into changing its nuclear policy.

Speaking to reporters on Sunday, Paknejad said that Iran is ready to deal with the impacts of UN sanctions on its oil sector, including on exports, investment, and equipment imports, The Caspian Post reports citing Iranian media.

He made the remarks amid threats by Britain, France, and Germany that they would trigger the so-called snapback mechanism under a 2015 nuclear deal between Iran and world powers if Tehran fails to reach a new agreement on its nuclear program in the upcoming months.

The move could allow for a return of six UN sanctions resolutions that were adopted between 2006 and 2010 in response to Iran’s alleged non-compliance with UN nuclear regulations.

Experts say a re-imposition of the UN sanctions would have almost no impact on Iran’s ability to supply oil to international markets, as they do not directly target Iran’s oil sector.

However, they say the sanctions can affect Iran’s oil-related financial dealings with other countries, including with China, which has been the largest buyer of Iranian oil at the height of US sanctions on the country in recent years.