Tag Archive | Iranian oil

Final push for renewable energy promised

Continue Reading

Posted in Electricity, Energy, Finance, economic, Fuel,oil,renewables, Land,Agriculture, Mining, beneficiation, Public utilities, Trade & Industry0 Comments

South Africa still off the hook on Iranian oil

As a result of a South African cabinet meeting last June, a cabinet statement that followed carried comment on the sanctions imposed by the USA against foreign banks that deal in petroleum based-transactions involving Iranian banks, South Africa gaining exemption in the short term, having now enjoyed 30 days (Mon 30 July).

The statement read at the time:- “Cabinet noted that the United States of America has granted South Africa a 180 day exemption against the Iranian oil sanctions that  commenced  1 July 2012.

The USA imposed sanctions against Iran apply in terms of which financial institutions which continue to transact with the Iranian banks, and in particular, the Islamic Republic Bank of Iran, risk being cut from the USA financial system. The petroleum based sanctions came into effect internationally on 1 July 2012.

The European Union (EU) followed suit by imposing additional sanctions on Iran. Of importance to the South African refining sector, the EU put a ban on the provision of insurance and reinsurance by EU insurers to the State of Iran and Iranian owned companies. Furthermore the EU decided to ban new contracts to import petroleum and petroleum products from Iran and to end existing contracts by 1 July 2012.

The sanctions impact negatively on the long term sustainability of South Africa’s refining sector due to increases in both the capital and operational costs to alter the crude diets for the respective refineries.

Given the impact on the South African refining sector and ultimately the security of supply, South Africa opted to apply for an exemption from the USA government. On 11 June 2012, the USA Secretary of State announced that South Africa, along with countries such as Malaysia, India, Republic of South Korea and Sri Lanka has been grated the exemption by the USA.

This means that the sanctions will not apply to South African financial institutions which transact with the Islamic Republic of Iran for the fiscal year 2012. The exemption period is 180 days (6 months), currently being enjoyed by South Africa, and is potentially renewable provided there has been a significant reduction of the crude oil from Iran during the period of the exemption.

It must be noted that this exemption is only applicable to petroleum based transactions. This followed intense negotiations between South Africa and United States of America.

 

Posted in Cabinet,Presidential, Finance, economic, Fuel,oil,renewables, Mining, beneficiation, Trade & Industry0 Comments


This website is Archival

If you want your publications as they come from Parliament please contact ParlyReportSA directly. All information on this site is posted two weeks after client alert reports sent out.

Upcoming Articles

  1. Carbon Tax debate heats up in Parliament
  2. Copyright Bill goes into final stages
  3. Hate Crimes Bill on way back to Parliament
  4. DTI briefs Parliament on the road ahead
  5. RE-IPP4 alive again with LNG interest
  6. Fresh start to Minimum Wage Bill
  7. Competition Commission rough on investors

Earlier Editorials

Earlier Stories

  • AARTO licence demerit system studied  …. In what has been a legislative marathon, the update of the Administrative Adjudication of Road Traffic Offences Act (AARTO) has now reached a stage […]

  • SARS role at border posts being clarified …. In adopting the Border Management Authority (BMA) Bill, Parliament’s Portfolio Committee on Home Affairs agreed with a wording that at all future one-stop border […]

  • Modernising SAPO a culture change ….. sent to clients 27 February…. Stage by stage, Mark Barnes, Group Chief Executive Officer of South African Post Office (SAPO), appears to be reforming cultures and […]

  • OECD money task force waiting for SA   ….sent to clients Feb 7…. Chairperson of the Standing Committee on Finance, Yunus Carrim, made it quite clear in terms of parliamentary rules that […]

  • President Zuma vs Parliament on FICA Bill …..editorial……The convoluted thinking that is taking place in South Africa to avoid the consequences of the law has once again become evident in […]