Shell refuses to renew contracts with Iranian airlines

18 July 2010

US-imposed sanctions on Iran hit aviation industry

UK/Dutch Shell Group says it is not renewing its contracts to supply jet fuel to national carrier Iranian airlines as US sanctions against Iran start to hit the aviation industry.

Shell is the latest company to stop the supply of jet fuel to Iran-based carriers in the wake of fresh US sanctions.

“While we don’t comment on commercial arrangements with individual airlines or airports, we are not renewing the small number of contracts, in various locations, to supply jet fuel to Iranian airlines due to commercial reasons,” says a spokesman for Shell Group.

Iranian airlines say they are now making alternative refuelling arrangements so that operations are not affected on longer routes to the UK and Europe.

Earlier in July, the UK’s BP stopped supplying jet fuel to national carrier Iran Air at Germany’s Hamburg airport (MEED 15:7:10).

The US imposed a further round of sanctions on Iran in June, which were aimed at weakening Iran’s ability to finance and develop its nuclear programme. The sanctions ban the export of gas and petroleum products to Iran.

Airports in the UK and Germany have since refused to allow Iranian passenger planes to refuel. However, Dubai International airport is still allowing Iranian planes to refuel.

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