Singapore Fuel Oil Imports from Iran Can Resume After Financial Transactions Ban Lifted

by Ship & Bunker News Team
Monday February 1, 2016

The Monetary Authority of Singapore has lifted the ban on financial transactions with Iran, according to reports.

Sanctions have been in place since June 18, 2012, and applied to all financial institutions and individuals, preventing Singaporeans from doing business with the Iranian government, its central bank, or any financial institutions in Iran.

The move could impact the bunker markets, as between 2007 and 2011 Singapore is reported to have relied on Iran for some 6 percent of its total fuel oil imports.

While no fuel oil was imported for over a year the week ending February 9, 2011, imports resumed in April 2012 and nearly 826,000 mt of fuel oil arrived in Singapore in the first six months of 2012.

At the time International Enterprise (IE) Singapore, the country's trade agency, increased pressure on firms to reduce trade with Iran.

Previously, on January 12th, 2012, the U.S. State Department imposed sanctions on local Singaporean oil firm Kuo Oil after the United States determined the firm breached a limit on deliveries of refined petroleum products to Iran between late 2010 and early 2011.

The removal of sanctions by Singapore follows a similar move on the part of the European Council, which lifted sanctions on January 16th; Japan lifted sanctions January 22nd.

In July Ship & Bunker reported that the first shipment of oil in the post-sanctions era was headed to Singapore from Iran.

Ship & Bunker News Team
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