April 12, 2010 | Press Release

Shell Joins List of Companies Ending Gasoline Sales to Iran

Shell Joins List of Companies Ending Gasoline Sales to Iran

Threat of gasoline sanctions has forced many major companies out of Iranian market, but final legislation and strong presidential support still needed


Washington, D.C. (March 10, 2010) – The Foundation for Defense of Democracies today welcomed statements from Royal Dutch Shell indicating that it has stopped selling gasoline to Iran. FDD has provided leading research and analysis in support of strong, broad-based sanctions, in particular gasoline sanctions, as part of a comprehensive strategy to end the Iranian regime’s pursuit of nuclear weapons.

“With Shell’s confirmation today that it has stopped shipments of refined petroleum to Iran, the push for gasoline sanctions has now resulted in many of the regime’s top suppliers of gasoline exiting the market,” said FDD Executive Director Mark Dubowitz. Other companies that have bowed out include Vitol, Trafigura, Glencore, BP, and Reliance Industries.

“The Obama administration — by signing tough new gasoline sanctions into law and applying it to select violators — could send a shot across the bow to the Asian and Gulf oil traders who are replacing their European competitors,” Dubowitz said. “The Treasury Department’s decision to impose almost a billion dollars in fines against Dutch, British and Swiss banks for violations of Iran sanctions laws sent a shockwave across the financial industry. This helped persuade over 80 financial institutions to end their ties with Iran. Sanctioning companies who continue doing business in Iran’s energy industry — the lifeblood of the men who rule Iran — would send a similar shockwave throughout the energy industry.”

“President Obama has an enormous opportunity to rally Americans and Europeans to the cause of gasoline sanctions in the name of Iranian democracy,” said Dubowitz. “If the regime manages to crush the Iranian opposition, we will have lost perhaps our last, best lever to force an end to the regime’s illegal nuclear weapons program.”

Both the House and the Senate have advanced legislation to impose sanctions on companies supplying gasoline to Iran and on the insurance, reinsurance, and shipping companies that facilitate this trade. On December 15, 2009, the House approved the Iran Refined Petroleum Sanctions Act (IRPSA) by a vote of 412-12. On January 28, 2010, the full Senate approved the Dodd-Shelby Comprehensive Iran Sanctions, Accountability, and Divestment Act (S.2799), which combines several pieces of sanctions legislation, including the Senate version of IRPSA. The House and Senate bills will be reconciled in conference committee.

Iran’s remaining gasoline suppliers include the French energy company Total; Kuwait-based IPG; Russia’s LUKOIL; the state-owned Malaysian energy company Petronas; and three Chinese companies: China’s state-run Zhuhai Zhenrong Corp., ZhenHua Oil, and CNPC.

The threat of sanctions has caused numerous banks to stop underwriting gasoline sales to Iran, and two insurance companies, Munich Re and Allianz, have also exited the market, increasing the difficulties that Iran will have importing the 40% of gasoline it needs to meet domestic consumption.

FDD researches the energy companies that supply Iran with gasoline and has identified significant points of leverage that can be used to convince them to end their trade. It also conducts research on the insurance and reinsurance companies that facilitate gasoline sales to Iran.

For more information on FDD’s Iran Energy Project, the companies involved in supplying Iran with gasoline, and ways to significantly reduce Iran’s gasoline imports, please visit IranEnergyProject.org or contact Noah Chestnut at
[email protected]
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The Foundation for Defense of Democracies is a non-profit, non-partisan policy institute dedicated exclusively to promoting pluralism, defending democratic values, and fighting the ideologies that drive terrorism. Founded shortly after the attacks of 9/11, FDD combines policy research, democracy and counterterrorism education, strategic communications, and investigative journalism in support of its mission. For more information, please visit

www.defenddemocracy.org

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