Petrobras fears sanctions should it fuel Iranian ships

In a note directed at the market, Petrobras reported that the reason why two Iranian ships stuck near the Paranaguá port, in the southern Paraná state, were not fueled was the fact that the bulk carriers and the company to which they belong have been targeted by US-imposed sanctions.

“Petrobras did not provide fuel to the exporting company because the Iranian ships subcontracted by it and their owning company have been sanctioned by the United States,” the statement reads.

The Brazilian oil-giant went on to say that, should it fuel the vessels, “it may be run the risk of being included on the same list, which could lead to significant losses for the company,” adding there are other fuel firms in the country.

Carriers Bavand and Termeh have been waiting for bunker fuel since June. The vessels came to Brazil with urea and should go back to Iran loaded with Brazilian corn.

The exporting company that contracted the ships worked to get an injunction from a Paraná court ordering Petrobras to fuel the vessels. The Brazilian firm appealed against the ruling, and the decision was overturned by a motion penned by Supreme Court Justice Dias Toffoli. The preliminary decision is yet to be considered by the top court floor. The exporter’s name remains secret.

Sanctions

Since November last year, US President Donald Trump has imposed sanctions against Iran, arguing that the country has not complied with the nuclear agreement signed in 2015 by the US, the UK, France, China, Russia, and Germany.

The sanctions includes natural persons, vessels, maritime management organizations, banks, and exporters from Iran on the list of the US agency controlling assets abroad, which bans business between US firms and anyone on the list, also freezing assets overseas.