Business · Energy & Commodities · 1 hr ago
Iran says oil intermediaries owe the government up to $12bn
Iran says a network of oil intermediaries owes the government between 10 billion and 11 billion euros, or about $11bn to $12bn.
The claim was made by a spokesperson for Iran’s judiciary in September, and the amount equals about half the oil revenue projected in the government’s budget for the current fiscal year.
The system began in 2012, when US and European sanctions made it difficult for Iran to sell oil through official government channels and collect the proceeds.
Iran instead entrusted oil to institutions, individuals and companies to sell, with the money expected to go to the state treasury.
Some intermediaries did not deposit the expected amounts, creating accounting gaps and disputes over money owed to the government.
US officials say sanctions are making it harder for Iran to access oil revenue, while the United States maintains a naval blockade of Iranian ports.
The account does not say what steps Iran will take next to recover the money.
Iran says oil intermediaries owe the government between 10 billion euros and 11 billion euros, or about $11bn to $12bn.
The debt stems from an arrangement created in 2012 to sell oil despite US sanctions.
The government entrusted crude oil to institutions, individuals and companies, which were supposed to transfer sales proceeds to the treasury.
Discrepancies between expected oil revenue and payments to the treasury emerged early in the arrangement.
US officials have cited Iran’s difficulty accessing oil revenue as evidence that US economic pressure is having an effect.
- Who
- Iran’s government says a network of oil intermediaries, known as “trustees,” owes it money.
- What
- The intermediaries allegedly owe between 10 billion euros and 11 billion euros, or about $11bn to $12bn.
- When
- A spokesperson for Iran’s judiciary gave the estimate in September. The year is not stated.
- Where
- Iran.
- Why
- The debt is linked to an arrangement adopted in 2012 to sell oil despite sanctions, with proceeds supposed to go to the government treasury.
This story does not have two clearly opposing sides.
Iran adopted an oil-sales arrangement to circumvent sanctions targeting its oil exports.
Iran signed the Joint Comprehensive Plan of Action nuclear deal.
US Treasury Secretary Scott Bessent said Iran’s shadow banking system was buckling under pressure from the US campaign.
A spokesperson for Iran’s judiciary said oil intermediaries owed the government between 10 billion euros and 11 billion euros.
- Debt estimate
- 10 billion to 11 billion euros
- Dollar equivalent
- About $11bn to $12bn
- Arrangement began
- 2012
- First recipient institutions
- Oil Industry Pension Fund
- Other recipient
- Khatam al-Anbiya Construction Base
What people are saying
Iran’s shadow banking system was buckling
Sources
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