Bijan Zanganeh, the Oil Minister of Iran has expressed and faith that Iran will continue with its oil exports if European nations come forward to save the Nuclear Pact. The Minister clarified that despite the US withdrawal from the Pact, the volume of oil exports of Iran will not change if European Union stands by its side. The US withdrawal from the Deal has cleared the way for US Treasury for imposing heavy sanctions on the Iranian Republic after the expiry of 90- and 180-day periods which may also include sanctions on the oil industry of Iran and its Central Bank.
Europe has already committed itself to saving the Agreement as it sees it as a vital component of protecting the International peace and order. The Agreement offers Iran relief from sanctions in exchange for putting strict curbs on its nuclear program. The last economic sanctions had severely crippled the Iranian economy and had slashed its exports by 1 million barrels a day. It was in 2016 when the sanctions were removed as per the obligations of the Deal, Iran re-bounced as the major oil exporter of the world.
Many European firms are cautious about pursuing any business deals with Iran due to fear of impending US sanctions. Iran needs about $100 billion worth of foreign investments to bolster its crude production.
Many oil purchasers of Iranian Oil are considering to seek US waivers against the sanctions. EU Energy Chief Miguel Arias Canete is in Tehran to discuss a range of measures proposed by EU to override the effects of US sanctions on Iran in a move to encourage the moderates in Iran who wish to keep the trade open with the West. Arias Canete expressed hope to resolve all the obstacles which come in the way of normal trade in oil. Iran also proposed direct Euro-based payments for all the oil they import from Iran to completely bypass the US financial system. Other proposed measures included renewal of a measure which blocks sanctions and protects European businesses in Iran which will finally pave way for European Investment Bank to do business in Iran. EU holds a great investment in Iran to the tune of 20 billion Euros and is dominated by Germany, France and Italy. The primary sectors are energy and aerospace. However, there are signs from some foreign firms to pull back from these deals in view of the sanctions.
Iran has however already stated that many Chinese and Russian companies are keen to do business with Tehran in case of withdrawal of European companies.