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â€˜Iranian MPs mulling plan to cut oil exports to Europeâ€™

26 January 2012 09:27 (UTC +04:00)

The European Union formally imposed an oil embargo on Iran and agreed to a freeze on the assets of the Central Bank of Iran on Monday, but existing contracts will be honored until July 1.

â€œA number of representatives of the Majlis and I are seeking to approve a plan according to which all European countries that made Iran the target of their sanctions will not be able to buy even one drop of oil from Iran and oil taps will be turned off to them so that they will not play with fire again,â€ Soudani, who is a member of the Majlis Energy Committee, told the Fars News Agency in an interview published on Wednesday.

â€œEurope will burn in the fire of Iranâ€™s oil wells,â€ and sanctions will take their toll on European countries for three reasons, he said, noting, â€œThe first reason is that a number of European countries have no other option besides buying Iranâ€™s oil since the structure of their refineries is compatible with Iranâ€™s oil, and it is difficult for them to replace Iranâ€™s oil.â€

â€œThe second reason is that the embargo will cause an increase in oil prices, and the Europeans will be compelled to buy oil at higher prices,â€ Soudani stated.

He added, â€œThe third reason is that the Europeans, due to their need for Iranâ€™s oil, will be compelled to buy Iranâ€™s oil indirectly and through intermediaries, and this will inflict more expenses on them.â€

â€œEuropean firms have no alternative but to enter into contracts with us since abandoning Iranâ€™s oil would mean the extinguishing of the candles of their economic lives.â€

In addition, MP Emad Hosseini told the Mehr News Agency on Wednesday that the plan may be discussed at an open session of the Majlis by January 29.

â€œIf the plan is ratified, the government will have to stop selling oil to Europe before the implementation of the oil embargo on Iran by the EU,â€ added Hosseini, who is the rapporteur of the Majlis Energy Committee.