Following the U.S. withdrawal from the nuclear agreement with Iran, Iranian Foreign Minister Mohammad Javad Zarif traveled to China this week to consult on securing Iran's interests in maintaining the JCPOA. Reuters reported on Wednesday, May 16, citing three informed sources, that Saeed Khusrow, the international relations manager of the National Iranian Oil Company, also accompanied Zarif to China to secure guarantees from the country's refineries for continued oil imports from Iran despite U.S. sanctions. The report adds that both the Chinese government and its refineries expressed 'hope' to continue oil imports from Iran but refrained from providing guarantees. China is Iran's largest oil customer, purchasing 655,000 barrels per day in the first quarter of this year, accounting for more than a quarter of Iran's total oil exports. During the sanctions period, this country was a customer for half of Iran's oil exports. Reuters notes that at that time, Chinese companies reduced their oil purchases from Iran to obtain exemptions from U.S. sanctions. Iran lost half of its oil export capacity and incurred about $80 billion in losses between 2012 and 2015. The report states that Khusrow met with executives from the 'Zhouhai Zhenrong' company, which holds a 90% share of all oil imported by China from Iran, as well as Sinopec. Sinopec and CNPC receive crude oil from Iran in exchange for multi-billion dollar investments to develop the fields in the West Karun block, in addition to annual oil purchase contracts. Reuters cites its sources stating that the managers of these refineries told Iran they would comply with the Chinese government's requests. This is Khusrow's second trip to China in the past month. Recently, Donald Trump announced that the current global oil production level is sufficient to significantly reduce Iran's oil exports. The report adds that Iran's oil customers in Asia and Europe are looking at the six-month exemptions from U.S. sanctions. During the sanctions period, Iranian customers typically reduced their purchases of the Islamic Republic's oil by about 20% every six months. During Zarif's visit to Brussels to meet with European powers on Tuesday, they announced their efforts to maintain the JCPOA but acknowledged facing challenges in providing the guarantees Iran is seeking.
China's Refusal to Guarantee Oil Purchases from Iran
Iran's Foreign Minister Zarif and oil company officials visited China to seek assurances for continued oil imports amidst U.S. sanctions. While China expressed hope to maintain imports, it did not provide guarantees. This situation is critical as Iran's economy heavily relies on oil exports, and the lack of guarantees could further strain its economy.
👥 Key Players
⚡ Actions
📰 What Happened
Iran seeks oil purchase guarantees from China amid U.S. sanctions but receives no commitments.
- Mohammad Javad Zarif negotiate China
- Saeed Khusrow negotiate Chinese refineries
- Chinese government and refineries announce Iran
💡 Why It Matters
📚 Background
Iran is struggling to secure oil purchase guarantees from China, its largest oil customer.
📝 Key Evidence
🏷️ Entities Mentioned
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Translation confidence: 85%