UPDATED Iran & Sanctions: Could Tehran's Flights Be Grounded?

UPDATE 1740 GMT: Britain's largest oil company BP has instructed its European operations not to refuel Iranian airlines "due to a decision from the U.S. Congress".

UPDATE 1530 GMT: Press TV has now posted a story which repeats the claim that Britain, Germany, the UAE, and Kuwait have suspended supplies of fuel.

Press TV adds denials from German'sTransport Ministry and Abu Dhabi airports that there was any ban; however, as EA readers have noted, this does not preclude a cutoff by private suppliers.

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The German Bureau first alerted us to this potentially significant story this morning. A key pro-Government member of Parliament, Kazem Jalali, had spoken of court action against the US for its unilateral sanctions against Iran. Jalali specifically noted the American threat to suspend sales of aircraft fuel (see our morning updates).

Deep in the story was the note that the United Arab Emirates, Kuwait, and Germany had followed the American lead and halted fuel supplies.

Hours later came the confirmation, via Iranian Students News Agency and then relayed outside Iran, from the secretary of Iranian Airlines Union: "Since last week, after the passing of the unilateral law by America and the sanctions against Iran, airports in England, Germany, the UAE have refused to give fuel to Iranian planes."

Peyke Iran followed by reporting that an Iran Air flight from Frankfurt, Germany had been postponed and might be cancelled due to the fuel shortage.

And now our German Bureau adds this bit of information: on Sunday Iran Air cancelled a flight to Hamburg, Germany.

Watch this (air)space for developments....

Comments

[WitteKr]

"However, a spokeswoman for the Abu Dhabi Airports Company (ADAC) told Reuters that it was continuing to supply Iranian jets with fuel. ADAC manages the airports for the cities of Abu Dhabi and Al Ain in the UAE. "We have contracts with Iranian passenger flights and continue to allow refuelling," she said.
http://news.bbc.co.uk/2/hi/middle_east/10511420.stm" rel="nofollow">http://news.bbc.co.uk/2/hi/middle_east/10511420...

[WitteKr]

"A UAE civil aviation spokesman, contacted by AFP, said he "had no information" about the reports that Iranian planes had been refused fuel.
And in Germany, the transport ministry said in a statement that neither US nor United Nations sanctions covered the refuelling of Iranian passenger planes, without a specific reaction to the Iranian reports."
http://www.google.com/hostednews/afp/article/ALeqM5ijLhMoJB3BBcBPdy3qZ3QTSLkSxg" rel="nofollow">http://www.google.com/hostednews/afp/article/AL...

[WitteKr]

It seems there could be more truth in the Iranian allegation then I first thought possible. Iranian jets are being fuelled by private companies. If these provide fuel worth 5 million US$ over a period of a year, they might face problems - under the newest US sanctions.

"A spokesman for the UK's Civil Aviation Authority told the BBC that such a move would be down to individual fuel companies.
Germany's Transport Ministry said the refuelling of Iranian planes was not banned under EU or UN sanctions. However, he could not comment on whether any individual providers were refusing to fuel Iranian aircraft.
The US sanctions prohibit the sale or provision to Iran of refined petroleum products worth more than $5m (£3.3m) over a year.
Paul Reynolds, World affairs correspondent for the BBC News website, said it might be that fuel companies are worried that their sales over a year might add up to $5m, in which case they could face a possible ban on doing business in the US."
http://news.bbc.co.uk/2/hi/world/middle_east/10511420.stm" rel="nofollow">http://news.bbc.co.uk/2/hi/world/middle_east/10...

[WitteKr]

Ah, correct or saving face? Iran Air in Germany denies fuel supply refusal.
"The German office of Iran Air, the national carrier, dismissed Iranian reports Monday that Germany had refused to refuel Iranian passenger planes since Washington imposed unilateral sanctions. "It is not correct," Mohammad Reza Rajabi, the head of the airline's operations in Germany, told AFP when asked about the reports by Iran's ISNA news agency. "We have not had any problems," he said. "Yesterday we had flights and today and tomorrow again we will fly."
http://news.yahoo.com/s/afp/20100705/wl_mideast_afp/irannuclearpoliticsgermany_20100705155400" rel="nofollow">http://news.yahoo.com/s/afp/20100705/wl_mideast...

[Baz]

Reports are that, at the moment, BP ( as a very large producer of jet fuel) has stopped providing fuel to Iranian aircraft ( in order to avoid US Authorities taking action against them)

Does anybody know who else produces jet fuel and who would not be concerned about also doing business in the US??

Essentially the US is saying to the business world - if you want to do business with us, then you cannot also do business with Iran. You choose what you want to do.

Barry

[WitteKr]

No idea, Baz. But there might be another motive... Making up for the oil spill?
"BP has stopped supplying Iranian airliners with jet fuel in response to tough new US sanctions imposed on the Islamic republic. (...) BP, one of the world’s largest suppliers of jet fuel, refused to discuss its dealings with individual airlines. However, the company said: “We fully comply with any international sanctions in any areas in which we operate.”
A source in the Gulf familiar with the issue said: “An international jet fuel supplier in many international airports around the world has decided to cease refuelling Iranian aircraft, including at two terminals in the United Arab Emirates.
“Iranian air operators at UAE airports have other sources to refuel. The UAE will continue to abide by United Nations resolutions and will continue to operate within this framework.”
BP’s decision has affected one terminal in Dubai airport and another in Sharjah airport in the UAE, the Middle East’s business and air transport hub. But Iranian airliners have been able to switch to other suppliers.
BAA, owners of Heathrow, said Iranian passenger carriers were still being refuelled at Britain’s busiest airport. European diplomats said BP’s decision to refrain from selling aviation fuel to Iran was not being applied by other companies. An Iran Air flight is understood to have taken off from Heathrow as normal on Sunday night. (...)
BP’s standing in the US and its relations with the White House have already suffered dramatically as a result of the oil spill in the Gulf of Mexico."
Financial Times: http://www.ft.com/cms/s/0/8d977878-8862-11df-aade-00144feabdc0.html" rel="nofollow">http://www.ft.com/cms/s/0/8d977878-8862-11df-aa...

[Baz]

Wittekr

I am sure that the Gulf oil spill is up there somewhere in the equation.

BUT - in spite of assertions from some small countries like Brazil, Turkey, etc that American influence is on the wane, it is still the largest economy in the world - and anybody wanting to do business there will now have to think very carefully about a number of things. It is this aspect of the sanctions - be they the "official" UN ones or the ones now unilaterally applied by the US - that will be worth watching. In this case, BP is a major supplier of jet fuel to international airports- even if other sources are available, things are going to get further complicated from now on

Barry

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