Snapback mechanism will not impose new oil trade curbs: Paknejad
Iranian Oil Minister Mohsen Paknejad said on Wednesday that no new “troublesome” restrictions would be imposed on the country’s oil trade with the activation of the so-called “snapback” mechanism, adding that measures had been taken to ensure crude sales would not be affected when it is enforced.
“We have faced such severe restrictions from the unilateral and unjust US sanctions over the past years that this situation will not add much to the existing pressure,” Paknejad told reporters. “Should circumstances require further action, appropriate planning will be undertaken,” IRNA reported.
Paknejad stressed that Iran’s oil sales personnel are fully prepared to deal with sanctions. “The national oil sales team is staffed by some of the most capable experts, especially when it comes to countering, or more precisely neutralizing them,” he said. “In recent days, we held extensive meetings with the expert group and adopted the necessary measures.”
He added, “We will do our best and have no concern. People should not be worried either. Oil sales continue and we have no problem.”
Paknejad explained that the snapback mechanism does not explicitly target oil sales, but instead focuses on areas such as trade, financial transactions, commercial activity, and maritime transport. He acknowledged that these sectors may face certain challenges, yet assured that appropriate measures will be taken at the right time.
Separately, National Iranian Oil Company (NIOC) CEO Hamid Bovard emphasized that the company is determined, despite external pressures and sanctions, to turn the country into a major hub of development and keep the national economy running. He said the company’s programs focus on two main areas: “increasing production” and “capturing associated gas.”
Under Iran’s Seventh Development Plan, the government is targeting daily oil sales of 4 million barrels per day (bpd). Paknejad had stressed earlier this month that the plan sets daily production capacity at 4 million bpd but financing the investments needed to achieve those targets remains a serious challenge. Paknejad had said that he usually avoids giving specific figures, “but on average the country’s crude oil production capacity has risen by 127,000 barrels per day over the past year.”