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China has begun supplying oil to Iran in the past month and already accounts for one-third of the country’s fuel imports, the Financial Times reports. Oil imports are not part of a United Nations sanction and the supplies are legal, but the move comes as G20 world leaders, meeting in New York Wednesday 23 September, discuss enforcing sanctions against Iran to discourage it from further developing its nuclear programme. Iran insists the nuclear programme is for peaceful purposes, as a source of energy, and that it is not building bombs. The country is one of the world’s largest oil producers, but its aging system is inefficient and it imports 120,000 barrels a day, according to the FT. China agreed in 2004 to purchase oil from Iran and to invest in its system. The $100 billion deal in 2006 prompted concern in the US, with observers saying that China appeared to be rushing to sign the deal ahead of sanctions. In the latest twist to the story China’s oil replaces that from companies such as BP which have stopped supplying Iran. Washington Post, 2006, Brookings Institution editorial, July 2009

Posted by Ellen Wallace on 23 September 2009 at 9:54 | permalink
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News story, GenevaLunch, 23 September 2009.

Filed under: World news

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