Iran threatens to stop imports from South Korea over oil halt

[xuxu1457]

After South Korea decide to stop oil import from Iran,
http://www.defence.pk/forums/world-...rea-stop-all-oil-imports-iran-next-month.html
Iran did
Iran threatens to stop imports from South Korea over oil haltBy Paula Hancocks, CNN
Iran threatens to stop imports from South Korea over oil halt - CNN.com
June 27, 2012 -- Updated 0828 GMT (1628 HKT)

Seoul, South Korea (CNN) -- Iran threatened Wednesday to halt all imports of goods from South Korea in response to Seoul's announcement a day earlier that it would stop accepting Iranian oil.

South Korea said Tuesday that it would suspend all Iranian oil imports from the start of July in response to a European Union insurance ban on tankers carrying crude from Iran.

The Iranian ambassador to South Korea, Ahmad Masumifar, responded by saying in an interview with the South Korean news agency Yonhap on Wednesday that Tehran "may decide to fully stop importing Korean goods."

Reached by telephone, an official at the press office of the Iranian Embassy in Seoul confirmed Masumifar had made the comments to Yonnhap but declined to elaborate further.

The EU and United States have been widening sanctions against Iran recently to put pressure on Tehran to curtail its nuclear program.

Western powers say they believe the program is intended to build nuclear weapons, but Iran insists it is for peaceful purposes.

South Korea is the first major consumer of Iranian oil in Asia to suspend all imports. In 2010, it was the fourth biggest importer of Iranian oil, according to an official from the South Korean Knowledge Economy Ministry. Figures for 2011 aren't yet available, the official said.

Iran's other big oil customers in the region are Japan, China and India -- none of which have announced plans to stop receiving shipments.

The Knowledge Economy Ministry said in a statement Tuesday that it relies heavily on European companies for insurance of its oil imports and has sent representatives to the EU to make the case for continuing insurance coverage.

"The government has been putting contingency plans in place in case Iranian oil imports would be stopped," the statement said. Alternative supplies are being sourced from Qatar, the United Arab Emirates, Oman and Kuwait.

South Korea already lowered its Iranian oil imports by 44% between January and May -- from 7 million barrels to 3.9 million barrels -- to try to lessen its dependence on them, according to government figures.

 

[Rusty]

Good move
The only thing the Korean Government cares about is the profits of Samsung and Hyundai.

 

[Korean]

Korea is not stopping Iranian oil import. They are just making an alternate government-backed insurance arrangement.

 

[ChinaToday]

very good move by iran they should teach this america lap dog a lesson

 

[kawaraj]

It's just tit4tat, reasonable.

 

[KingMamba]

They should stop imports ASAP just to prove a point.

 

[Thomas]

Korea is not stopping Iranian oil import. They are just making an alternate government-backed insurance arrangement.

can you provide a source for this? from what I see RoK has stated they have found alternative sources to replace Iranian oil.

 

[Abii]

can you provide a source for this? from what I see RoK has stated they have found alternative sources to replace Iranian oil.

1) "Alternative sources" is a phrase that gets thrown around way too often. Saudi Arabia can't supply everyone. Even if it can, operating at max capacity is dangerous. Sudden fluctuations in exports would be a clear possibility and countries like Korea wouldn't wanna gamble on things like that.

2) If Korea wants to continue to export its cars and electronics to Iran, a country of 80 million people, it will have to find a way to buy our oil. Iran is an N-11 economy and it will have a 100 mln pop'n to boot soon. Today isn't even that important. It's all about having a foot hold in the nation. The Koreans have managed to establish themselves. If they don't manage to find a way to sort this issue out, they will destroy decades of hard work and lose all the business to Iranian firms and they know it.

 

[xuxu1457]

1) "Alternative sources" is a phrase that gets thrown around way too often. Saudi Arabia can't supply everyone. Even if it can, operating at max capacity is dangerous. Sudden fluctuations in exports would be a clear possibility and countries like Korea wouldn't wanna gamble on things like that.

2) If Korea wants to continue to export its cars and electronics to Iran, a country of 80 million people, it will have to find a way to buy our oil. Iran is an N-11 economy and it will have a 100 mln pop'n to boot soon. Today isn't even that important. It's all about having a foot hold in the nation. The Koreans have managed to establish themselves. If they don't manage to find a way to sort this issue out, they will destroy decades of hard work and lose all the business to Iranian firms and they know it.

Korea main export is car and mobile and so on, Samsung make 22% of Korean GDP, and four Companies (Samsung Group, Hyundai Motor, LG Group and SK) make most of Korean GDP
this can be replaced by any other countries like Japan China UR India ....but oil can't move to other countries

 

[kollang]

Korea is not stopping Iranian oil import. They are just making an alternate government-backed insurance arrangement.

any source?

 

[Harry_Thomason]

Considering Japan, China and India found a way around this issue, it wouldnt be very smart for Koreans to ruin its semi-friendly relationships with Iran. Not only Korea would have oil imports shortages, but also would lose all Iranian market as well. This would be a bigger loss for Korea than Iran, who is attaining self sufficiency anyway and dont need Korean goods.

Even if all sanctions are lifted in the future, it will be much harder for Korean manufacturers to return to Iran.

 

[tvsram1992]

Only S Korea would be loser in the game played by US . Any way its good for us , we can buy more Iran oil

 

[Thomas]

1) "Alternative sources" is a phrase that gets thrown around way too often. Saudi Arabia can't supply everyone. Even if it can, operating at max capacity is dangerous. Sudden fluctuations in exports would be a clear possibility and countries like Korea wouldn't wanna gamble on things like that.

There are other countries that have high oil production right now. Brazil, the U.S., Canada, ECT. Iran's oil is easier to replace then you would like to admit.

 

[anonymousposter]

i hope you are right thomas, but until US starts to pump out that alaskan oil, korea will be in tough situation.

of course, as much as korea wants to maintain friendly relations with countries like Iran, American alliance becomes even more important in a world where chinese guns are pointing at Seoul.

for reference, korea actually had friendly relations with guys like qaddafi and fidel castro. after qaddafi bit the bullet, korea now have friendly relations with the new governement. this iran korea drama will settle down again after the nuclear talks settle down.

 

[Korean]

Iran Offers $1 Billion Insurance on Oil Tankers to S Korea -Hyundai Oilbank Official | Fox Business

Iran Offers $1 Billion Insurance on Oil Tankers to S Korea -Hyundai Oilbank Official
Published July 18, 2012

Iranian officials have offered accident insurance coverage worth a maximum of $1 billion for Iranian tankers shipping Iranian crude oil to South Korea, a Hyundai Oilbank official, who declined to be named, said Wednesday.
Hyundai Oilbank and SK Innovation (096770.SE), which fully owns the nation's other refiner, SK Energy, are considering Iran's offer, officials from both companies said.
Both companies imported crude oil from Iran until European Union sanctions that took effect July 1 effectively cut off insurance on Iranian crude shipments July 1.
The EU sanctions, which targeted Iran's crude-oil exports over its disputed nuclear program, prohibit European companies from insuring Iranian crude-oil shipments.
The South Korean refiners are considering using the ships of NITC, or National Iranian Tanker Co., they said.
Hyundai Oilbank is negotiating the details--including the offer of insurance and the number of monthly shipments--with Iranian officials, the Hyundai Oilbank official said.
An agreement may be reached by the end of the month, he said.
Meanwhile, Hyundai Oilbank is waiting for the government, which apparently finds the Iranian proposal "acceptable," to give it its official blessing, he said.

India, meanwhile, has already started using Iranian tankers to import crude. Officials in India, which relies on imported oil for three-quarters of its needs, have said the nation can't afford to stop importing from Iran totally and is making its own insurance arrangements.
India's state-run insurance firms have agreed to offer coverage of up to $50 million for each Indian ship carrying Iranian crude.

Like I said, this was strictly an insurance issue, not a politics issue.