Iran Feature: Oil Squeeze May Ground Tehran's Airplanes in Europe

Thomas Erdbrink, writing in The Washington Post, claims that the cut-off of oil exports by four of Europe's five largest companies is having an effect: Iran Air is unable to refuel its planes in most of Europe.

Note also the US Government's public-relations line: the sanctions are going to hurt Iranian people but their anger should be directed at their government, not Washington.

This summer Iran Air planes briefly faced problems with fuelling in Europe. If true, this story indicates that the problem is now far more serious and will be long-term:

A recent agreement between four of Europe's largest oil companies and the United States aimed at further isolating Iran is already having an impact, with Iran Air, the Islamic republic's national carrier, unable to refuel its planes in most of Europe.

The fueling problem follows a new push by the Obama administration to move beyond the strict letter of sanctions it imposed to a broader attempt to discourage international businesses from dealing with Iran.

It also illustrates a shift away from an earlier U.S. policy of reaching out to the Iranian people and trying to target mostly state organizations central to Iran's nuclear program. Officials now admit that the increased pressure is hurting ordinary Iranians but say they should blame their leaders for the Islamic republic's increasing isolation.

Under the agreeement, announced in Washington on Sept. 30, Total of France, Statoil of Norway, Eni of Italy, and Royal Dutch Shell of Britain and the Netherlands pledged to end their investments in Iran and avoid new activity in the country's energy sector. In turn, U.S. officials said, the companies would be protected from possible U.S. penalties for doing business with Iran.

In recent weeks, several major oil firms, including British Petroleum, Royal Dutch Shell and Q8, have abruptly canceled jet fuel delivery contracts with Iran Air. The move by some big oil companies that were not part of the September agreement appears to indicate a ripple effect across the industry, as administration officials had hoped.

"The goal here is . . . to end companies from doing business within Iran," Deputy Secretary of State James B. Steinberg said when he announced the deal. He added that he hoped others would "see that this is what responsible companies are doing and that they should follow in those footsteps."

As a result of the canceled jet fuel contracts, all Iran Air planes departing from destinations such as Amsterdam, London and Stockholm are now forced to make lengthy fuel stops either at an airport in Germany or one in Austria, where Total of France and OMV of Austria are still providing the 66-year-old airline with jet fuel until their contracts run out, possibly as soon as next month. At that point, Iran Air could be forced to cancel or severely reduce flights.

During such a stop in the Austrian capital last Sunday, several passengers complained about the unannounced stop. "What do we have to do with our government?" an Iranian man asked loudly, after discovering to his surprise that the plane had landed on the Vienna tarmac. "We are becoming prisoners because of these disagreements between Iran and America.''....

"We will continue to fly to Europe, if needed even with half occupancy to save fuel which we can bring from Tehran," said Mohammad Jalali, an Amsterdam-based district manager for Iran Air. "But we are losing time, money and passengers," he said....

After its delivery contract with Q8 was suddenly terminated by the Kuwaiti company, Iran Air approached all other possible sellers without success. "None of the oil companies are telling us why they have broken their contracts. We have agreements to operate from European countries; we are entitled to our fuel," Jalali said in an interview last week.

Representatives for major oil firms say jet fuel sales to Iran Air are good business but too dangerous to pursue given the threat of sanctions by the United States. "All big oil companies are in daily contact with the U.S. State Department regarding Iran," said a representative of a major oil firm on the condition of anonymity because of the sensitivity of the subject. "Be sure that the Obama administration is fully aware of the situation Iran Air is in."....

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