Smaller EU Firms Use Sanctions Against Iran as Opportunity to Cooperate

Masoud Ahmadzadeh, SOC’s first deputy managing director, told Sputnik that Iran’s Sepahan Oil Company and German EDL have signed an oil sector partnership agreement aimed at improving the quality of production of raw materials including motor and industrial oils.
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He also discussed the purpose of the partnership agreement in the context of the US sanctions regime as well as the benefits that Iran would get of it.

“Unfortunately, I can’t tell you the exact number of the contracts, as it is classified information. The German EDL has strong ties with Iran, and it has been operating in the Middle East and Iran for about 20 years. The company is interested in continued cooperation with Iran. However, the German government, as well as the European Union, allowed these companies to work with Iran, and support some of these companies so that the American restrictions didn’t affect their performance.”

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According to Masoud Ahmadzadeh, their company has discusssed the sanctions problem with these companies since the start of negotiations. Fortunately, EDL didn’t consider the sanctions a problem, so the sides managed to sign a partnership agreement. Ahmadzadeh mentioned the introduction of new technologies aimed at improving the quality of production in areas of cooperation between the companies.

“Our company specializes in oil refining as well as commercial oils and oils production. Our challenge now is to reach a new level, succeed in creating wax concentrates and achieve a higher quality paroline with lower levels of oils and added value of about two times. Rubber, textile and wood-working industries are using these wax concentrates. We are going to go further and start manufacturing highly-refined wax to use in the health care and food industries.”

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According to the first deputy managing director, SOC plans to implement this project together with EDL, and this will have many financial benefits for Iran as the price of the wax concentrate is now between $550 and $600, and the price of highly refined wax is $1,100 per ton.

Speaking about the fact that large companies such as Total are coming out of Iran, Ahmadzadeh said that these companies are being replaced by small and medium-sized European companies.

“As the sanctions make large companies leave Iran, smaller European firms willing to cooperate with Iran use this as an opportunity to replace them and the process has already started.”

He also added that Germany’s EDL was one of the first companies to sign a contract with Iran resulting in mutually beneficial cooperation.

Views and opinions expressed in this article are those of Masoud Ahmadzadeh and do not necessarily reflect those of Sputnik.

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