Dr. Massoud Jamali in a special note in INPIA; The effect of petrochemical sanctions in three areas / development of downstream industries, the best post-embargo opportunity

Implementing a petrochemical embargo is far more complex than an oil embargo. The sanctions on the petrochemical industry were not only predictable, but also repeated sanctions that first began in 1989 under a Security Council resolution and were intensified in 1991 by the European Union banning the sale of equipment and technology to Iran. The US government’s sanctions against Iran’s petrochemical sector are not entirely, but rather symbolic. Because on the one hand, most of our industries have full experience of operating under the sanctions, and on the other hand, due to the problems of banking and logistics transfers, practically most of the country’s industries and exports have been involved in sanctions. The effect of the petrochemical embargo can be examined in three parts, in the discussion of importing technology and catalysts needed by these industries, during which petrochemicals have been involved and have found ways to overcome it, and can be countered by the power of startups and The company used domestic knowledge base and let’s move towards localization of knowledge and technology. In the discussion of investment and development of the petrochemical industry, Western companies have left Iran following the embargo on the oil industry, but due to the attractiveness and advantages of the Iranian petrochemical industry over investment and aid from the East, we can hope, although in this situation Our woman is reduced. But after the sale, it is not possible to reduce the export of petrochemical products to zero. There are several important factors in reducing the effectiveness of sanctions. The first is that foreign petrochemicals in the short term can not produce and replace about 25 million tons of Iranian petrochemical exports and in the short term consumers are forced to buy products. The second is the diversity of petrochemical products and export markets, which, unlike the oil industry, has a wide range of consumers in downstream industries and in different countries, which increases the bargaining power for marketing, sales and export of products. Given the cost, markets and customers can be maintained by creating conditions and incentives for buyers. Of course, it should be noted that in pricing we should not act in such a way as to take the possibility of competition from downstream domestic industries in the region and leave the markets to competitors (reminder of false sales with 20 to 30 percent below the domestic sales price to some countries Neighbor). On the other hand, by creating a retail network and with the help of traders, petrochemical products can be delivered to foreign consumers. But the important and thought-provoking point is that despite more than eight thousand industrial units and a large number of union production units in the downstream petrochemical industries on which sanctions are not possible, it is an opportunity that can be used for the growth of domestic downstream industries and Exports created more value-added goods. By increasing domestic supply and with appropriate pricing, not only can the multi-year gap between domestic supply and demand be eliminated and the raw materials mafia hand cut off from this market, but it can also reduce rates due to the high employment of this industry. Unemployment is also effective.

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