Despite rhetoric, Turkey complies with US oil sanctions on Iran
Turkey has closed its
ports to Iranian oil, fully complying with US sanctions against its main
supplier, despite Ankara publicly criticizing the United States' move to end
import waivers and warning of a struggle to tap alternative producers.
The US decision to
fully re-impose sanctions on Iranian oil ended a six-month reprieve for Turkey
and seven other big importers as Washington steps up attempts to isolate Iran
and choke off its oil revenues.
An American military
presence in the region has also raised concerns over a potential US-Iran
conflict.
Full compliance allows
Turkey to avoid US sanctions even as its ties with the NATO ally are strained
on several other fronts, including over the planned purchase of a Russian
missile defence system that would trigger separate US penalties.
Turkey's largest oil
refiner Tupras had pressed Washington for an extension of the import waiver
before the May 1 expiration, according to a person familiar with the talks,
adding that when it was not granted the company made it clear it would halt all
imports from Iran.
Tupras did not
immediately reply to a Reuters request for comment.
According to Refinitiv
tracking data, no tankers loaded in Iran have arrived at Turkish ports so far
in this month.
Four days after the
waiver ended, a tanker carrying 130,000 tonnes of Iranian crude was midway
across the Mediterranean Sea to Turkey when it changed course and turned off
its tracker, Refinitiv oil analyst Ehsan ul-Haq said. Analysts, citing
satellite imagery, said it likely unloaded instead at the Syrian port of Banias.
The data shows that
Turkey began trimming its Iranian imports as early as march. Analysts said it
has replaced the oil from its neighbor with oil from Iraq, Russia and
Kazakhstan.
Last week, Reuters
reported that Iranian crude oil exports have fallen to 500,000 barrels per day
(bpd) or lower this month, with the bulk heading to Asia, according to tanker
data and industry sources.
Turkish President
Tayyip Erdogan has previously slammed the sanctions, saying they are
destabilising for the region. In Washington last month, his spokesman said the
country didn't want to be deprived of its right to buy oil and gas from Iran.
A day after the
waivers for China, India, Japan and other big importers were withdrawn,
Turkey's foreign minister said it did not seem possible for his country to
diversify its suppliers in such a short period of time.
Yet Tupras, which
consumes almost all of Turkey's oil imports, used its play book from 2012-2013,
when earlier US sanctions on Iran forced it to ramp up supplies from Iraq and
Russia, said an oil industry executive who requested anonymity.
"It is the same
story...This time they are importing more Kazakh oil though," said the
executive, adding that Kazakh import volumes hit a 20-year high in February.
Turkey, the largest
economy in the Middle East, is almost completely reliant on imports for its
energy needs.
Prior to May 2018,
when the US pulled out of the Iran nuclear accord, Turkey imported an average
of 912,000 tonnes of oil a month from Iran, or 47% of its total imports.
In the four months
since November 2018, when the US imposed sanctions and granted the limited
waivers, Turkey imported an average of 209,000 tonnes of Iranian oil, or 12% of
its total imports, according to Reuters calculations based on regulatory data.
The latest report from
Turkey's energy watchdog shows Iran supplied 15% of its oil consumption in
February, with Iraq accounting for 23%, Russia 20% and Kazakhstan 16%.
Iraq's oil minister
Thamir Ghadhban said last week that Turkey had requested more oil.