“Using shadowy middle men, multiple bank accounts and a fleet of ghost ships, Iran’s coal trade is quietly booming as the Islamic Republic tries to sidestep Western sanctions and prevent its industrial economy from crashing, Reuters reported”, notes Trend News Agency devoting a lump-sum article to Iran’s economic state.
“Iranians used to buy a lot of coking coal from Australia to make their own coke but that has stopped now as the big companies there don’t want to do it as they are too exposed,” a British-based coal trade source said. “So Iran went to buy coke from Ukraine,” he added, referring to the concentrated coal used in blast furnaces. Quoting the same source Trend notes that “While coal is not directly targeted as a commodity, the European Union imposed a ban on steel sales to Iran last week, making the Islamic Republic’s coal needs more pressing because it now must produce more steel itself. “
A Black Sea based trade source also reported receiving multiple enquiries in recent weeks from Iran. “It isn’t easy, it’s very complicated to deal with Iran,” the source said. “To do some business there you must use a bank with specialist knowledge, not the usual banks or Russian banks. I would use a Lebanese bank instead, which has representative offices in Tehran and acts as an agent between the mills and suppliers.”
“Anybody who is doing this kind of business is not going to say who the buyers are,” another Ukrainian coal source said. Another Black Sea based industry source familiar with the shipments said cargoes were being routed from the cargo port of Nikolayev, not far from Ukraine’s larger terminal of Odessa. “Exports have been going on a constant basis already for two years, and there are around two to three cargoes a month,” the source said. “Iranian vessels come into the port, pick up the coal and then head for home.”
