Petrobras to supply fuel to Iranian ships, says Toffoli

The Supreme Court (STF) president, Dias Toffoli, has ruled that Petrobras should supply the two Iranian ships stuck due to lack of fuel since the beginning of June near Paranaguá Port, in Paraná.

The stuck Iranian ships brought urea from Iran (used to make fertilizer) and were to return to the country loaded with corn. But Petrobras has refused to sell the fuel to its ships because it fears American reprisals – the US has extended its sanctions against Iran this year to target the country’s oil sector. The cargo of both ships is valued at R$100m.

According to Toffoli, there is no possibility of Brazil suffering US sanctions since the refueling of the ships will be done by court order.

Yesterday (07/24) Iran threatened to cut its imports from Brazil if the ships were not supplied with fuel.

According to Bloomberg, Iran’s ambassador in Brasilia, Seyed Ali Saghaeyan, told Brazilian authorities that his country could easily find new suppliers of corn, soybeans, and meat if the country refused to allow refueling.

“I told the Brazilians that they should solve the problem, not Iranians,” Saghaeyan said in a rare interview at the Iranian embassy in Brasilia. “If it is not resolved, the authorities in Tehran may want to make a decision because this is a free market and other countries are available.”

Brazil exports about US$2bn to Iran per year, main commodities such as corn, meat, and sugar. Tehran buys one-third of Brazilian corn exports.

According to data from the Brazilian government, while corn shipments to Iran grew by more than 30% last year compared to 2017, the volume of other exported items fell. Beef, for example, fell 38% and sugar 84% in the same period.

The ship refueling problem came just a month after Saqqayian met with Brazilian Vice President Hamilton Mourão for a conversation in which both praised improvements in the 116-year relationship between their countries, according to Mehr News Agency.

Sources: : Agência de Notícias Mehr, Newsweek, and Folha de S. Paulo

Sharing is caring!