Op-Ed: EU sanctions on Iranian oil will result in more Greek hardship

Greece blocked the proposal for EU sanctions against Iranian oil exports last month. Following further sanctions signed into law by Obama, further pressure is expected to be heaped on Greece, even though an oil embargo would cause further financial pain.

As President Obama signed into law further economic sanctions against Iran, Greece is under pressure to accede to European Union demands to impose oil sanctions on Iran. Last week Press TV reported that European Union spokesman Michael Mann said "The European Union is considering another set of sanctions against Iran and we continue to do that." EU foreign ministers are due to meet again in Brussels on Jan. 30 to discuss the matter, after Greece blocked a sanctions ban tendered in early December. According to the Centre for Global Energy Studies Iran exports 450,000 barrels of oil per day to Europe, which is snapped up by southern European countries mired down in debt crisis. Manouchehr Takin of CGES said a ban on Iranian oil exports to Greece, Italy and Spain, "would hurt Europe more than Tehran." Greece would be particularly affected by oil sanctions as other exporters have refused to deal with Greek traders. Reuters reported that previous suppliers of crude oil, Russia, Azerbaijan and Kazakhstan, have stopped trading with Greece due to precautionary measures in case Greece is unable to pay, even though thus far no payments have been reneged on. Meanwhile, Iran extends credit to Greece, which few other oil exporters are willing to do. Eugen Weinberg, a Commerzbank analyst, told CGES "an embargo would force them to source their oil requirements elsewhere at considerably higher prices." The head of OPEC has stated he hopes the EU does not implement an oil embargo, which will drive the price of crude inexorably upwards. It remains to be seen what pressure the Eurocrats are able to pile upon Greece to force an agreement on EU sanctions on Iran, even though they are clearly not in the best interest of the debt ridden nation which is already on its financial knees.