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Total stops petrol sales to Iran

2010-06-29 04:33:43

French energy company Total says it has stopped petrol deliveries to Iran, amid

growing international pressure over Iran's nuclear programme.

Total confirmed the move days after the US Congress passed unilateral sanctions

that could punish companies doing business with Iran.

The sanctions still have to be signed into law by US President Barack Obama.

The US and some allies believe Iran is seeking a nuclear weapon. Tehran says

its nuclear programme is peaceful.

It was not immediately clear how much petrol Total had been supplying to Iran,

or exactly when deliveries were stopped.

But the Financial Times newspaper quoted traders as saying that Total had

stopped supplies about a month ago.

Dependence on imports

The US sanctions aim to stop international companies from investing in Iran's

oil and gas industries or supplying it with petroleum products by preventing

them from trading in the US if they trade with Iran.

Such measures are not part of the most recent round of sanctions approved by

the UN, since Russia and China, both investors in Iran's energy sector,

objected.

Other companies have already taken similar action to Total in anticipation of

the measure passed by Congress.

Spain's Repsol confirmed on Monday that it had withdrawn from a contract it won

with Royal Dutch Shell to develop the South Pars gas field in southern Iran,

Reuters news agency reported.

The White House says President Obama will probably sign the Congress bill into

law later this week.

The American approach is designed to target a weak part of the Iranian economy,

BBC world affairs analyst Paul Reynolds reports.

Despite its huge oil and gas reserves, Iran still cannot refine enough

petroleum products for domestic demand and depends on imports for 30-40% of its

petrol needs.

However, Iran has other investors and suppliers and the practical effects

remain to be determined.