‘U.S. sanctions on Iran unproductive & wrong': Novak

September 17, 2018 - 21:45

TEHRAN- U.S. sanctions on Iran's oil industry are unproductive and there will be consequences to such a move, Russian Energy Minister Alexander Novak said on Monday.

"Our position remains that this is unproductive, this is wrong," Novak said when asked about the possible impact U.S. sanctions on Iran's oil industry could have.

"It is better to continue working in the market, Iran being just another exporter that provides stable supplies to the market," Novak said, speaking to CNBC's Geoff Cutmore at the Eastern Economic Forum (EEF) last week in Vladivostok, Russia.

"It is one of the richest in resources and has a solid standing in terms of its energy capability both in the OPEC, and in the energy markets as a whole. So, I think there will be consequences, I am sure, but we could only comment once they are in place," he said.

Novak has repeatedly voiced concern over the impact of U.S. sanctions against Iran.

Last Wednesday, he said, "This is a huge uncertainty on the market – how countries, which buy almost two million barrels per day of Iranian oil, will act. The situation should be closely watched, the right decisions should be taken".

Novak said global oil markets were “fragile” due to geopolitical risks and supply disruptions, Reuters reported.

Since implementation of the Iran nuclear deal (known as JCPOA) in January 2016, Iran and Russia have signed a number of agreements to cooperate in development of Iran’s oilfields.

Novak and his Iranian counterpart Bijan Zanganeh discussed energy cooperation between the two countries and through OPEC besides the possibility of Russian oil companies taking part in projects in Iran in Moscow in late July.


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