South Korea: A new chapter in the economic relations with Iran.

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The lifting of nuclear-related sanctions on Iran allows this country to tighten international economic relations, especially with Asian countries. South Korea wants to increase imports of Iranian oil, mostly condensate, in order to overcome growing internal demand and ensure better conditions (lower prices) in comparison to Qatars’ one.

 “We will increase oil and natural gas (liquids) imports from Iran, especially Iranian condensate,” said South Korea’s trade and energy ministry (Mar 1, 2016).

Currently, South Korea is one of the largest importer of crude and a big buyer of condensate. Their industry uses a super light oil for production of fuels and petrochemicals. Iran is providing about 100, 000 barrels of oil a day to South Korea and executives predict to double that amount by the end of 2016.

Both countries plan to establish efficient payment systems to simplify trade of crude and condensate. Contract will be concluded between National Iranian Oil Company and South Korea’s SK Energy.

A new partnership in the economic relations among Iran and South Korea is essential for them. Financial contracts may generate workplaces, accelerate development of the chemical sector and additionally wipe out bad appearance of Iran as isolated and fundamentalist state.

Sources:

http://www.reuters.com/article/us-southkorea-iran-oil-idUSKCN0W40P8

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