Shell Struggles to Repay Iran Oil Debt
From Gulf Times
Royal Dutch Shell is struggling to settle the over $1bn it owes Iran for oil purchases after options such as financing a gas pipeline or paying for food shipments were rejected, people familiar with the matter said over the weekend.
“There have been several options examined. None has been successful,” one person said.
Anglo-Dutch oil giant Shell’s $1bn plus debt to Iran is due to a European Union embargo that started July 1, which prevents the transfer of payments to Iran.
Shell’s failure so far to find a way to repay the debt isn’t only bad news for Iran, which is facing a steep economic crisis amid mounting sanctions over its contested nuclear programme but also for the Anglo-Dutch major. It needs to find a solution if it wants to return to the oil-rich Middle Eastern nation once the standoff with the West is over.
In a recent attempt, Shell contacted US commodities trader Cargill to pay for its deliveries of cereals to Iran in order to settle the debt, the people familiar with the matter said.