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Thursday, 6 September 2012 - Exclusive: Russian firm to halt Iran ship work as pressure grows |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Breakingviews Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (1) Full Focus Editor's choice Our top photos from the past 24 hours.  Full Article  Follow Reuters Facebook Twitter RSS YouTube Read Powerful quake hits Costa Rica, two dead | 4:39pm EDT Quebec separatist leader rushed from stage amid security scare 12:23am EDT Selena Gomez gets raunchy in "shocking" new movie 4:50pm EDT Obama convention speech scaled back due to storm threat | 5:15pm EDT Impunity for the rich and famous leaves Thais outraged 04 Sep 2012 Discussed 155 Exclusive: Pentagon threatens legal action over bin Laden book 132 Romney tells voters to move on from Obama disappointment 78 Obama, Democrats to make their case as convention opens Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Profile: Bill Clinton Former President Bill Clinton will speak at the Democratic National Convention.  Slideshow  Inside Quebec A look inside Canada's French-speaking province.  Slideshow  Exclusive: Russian firm to halt Iran ship work as pressure grows Tweet Share this Email Print Related News Iran says it treats Israeli military threats as American 7:11am EDT Iran to hold major air defense drill: commander Sat, Sep 1 2012 Iran doubles underground nuclear capacity: U.N. agency Thu, Aug 30 2012 UPDATE 4-Iran doubles underground nuclear capacity -UN agency Thu, Aug 30 2012 Iran's policies attacked by U.N. head, Egyptian leader Thu, Aug 30 2012 Analysis & Opinion Iran is using oil to find gaps in international sanctions Risk spills over in Middle East Related Topics World » Russia » Syria » By Jonathan Saul LONDON | Wed Sep 5, 2012 2:37pm EDT LONDON (Reuters) - A Russian firm has decided to stop verifying safety and environmental standards for one of Iran's biggest shipping groups, a letter showed, the latest international company wary of being caught up in Western sanctions on the Islamic Republic. Iran is under growing pressure over its disputed nuclear program and companies are cutting ties with its vital shipping sector, which transports most of its crude oil, for fear of losing lucrative U.S. business. Moscow opposes concerted trade pressure on Tehran by Washington and its allies, making the Russian company's decision unusual. A letter seen by Reuters showed St. Petersburg-based Russian Maritime Register of Shipping (RS), among the top 13 global ship classification societies, had decided to suspend its activities in Iran after being urged to pull out by U.S. pressure group United Against Nuclear Iran (UANI). A targeted campaign by UANI, which includes former U.S. ambassadors on its board and is funded by private donations, has already led to other classification societies exiting Iran. Without certification from classification societies, vessels are unable to secure insurance cover or call at most international ports. "The decision has been taken to suspend RS activities in Iran," its chief executive Mikhail Ayvazov wrote in a letter to UANI dated August 31. "Since its foundation in 1913, RS never was a political organization and didn't carry out any tasks connected with realization of any political interests of other organizations and states," Ayvazov said in a separate note. RS officials could not be reached for comment. Russia blasted the latest round of U.S. sanctions against Iran last month, calling them "overt blackmail" and said they would harm Moscow's ties with Washington if Russian firms were affected. UANI chief executive Mark Wallace said: "It is significant that Russia's leading classification society will now refuse to do business with the IRISL. Iran's friends are becoming fewer." Western sanctions have targeted Iran's oil industry, a vital source of government revenue, aiming to ratchet up pressure on Iranian President Mahmoud Ahmadinejad to halt nuclear work, which Tehran says is for peaceful purposes rather than military. "Iran will find ways around it but it's getting harder for them every day," a ship industry source said. IRAN SHIPPING FIRMS UNDER FIRE Sanctions pressure has led to the near collapse of an Iranian led shipping venture called Irano Hind Shipping, while Iran's biggest tanker operator NITC is increasingly being targeted by Washington. RS's Ayvazov said in the letter it was suspending all certification and related services to the Islamic Republic of Iran Shipping Lines' (IRISL) vessels as well as offshore platforms including drilling rigs. "Activities of RS do not contradict provisions of resolutions of the U.N. Security Council concerning sanctions against Iran," Ayvazov said. "The process of suspension will be completed as soon as practical and possible." An IRISL official, who declined to be named, said on Wednesday it had no information yet about the withdrawal of services. IRISL has been on a Western blacklist of sanctioned entities for a number of years. It has denied any wrongdoing. Ayvazov said in the letter the suspension of services included IRISL's oil tanker the Tour. Shipping sources have told Reuters the Tour was among vessels used to transport crude from Syria to Iran as part of Tehran's moves to bolster Syrian President Bashar Al-Assad's rule in the face of an armed revolt against him. Russia has continued to maintain strong business ties with both Tehran and Damascus, especially in shipping, despite Western pressure to isolate them. A small number of Russian companies have pulled back from business with Iran, including LUKOIL, but non-sanctions related trade such as grain and food exports remains buoyant. There are more than 50 classification societies. Members of the top 13, including Germany's Germanischer Lloyd and France's Bureau Veritas, have left Iran in recent months after being targeted by UANI. Others such as Britain's Lloyd's Register have pulled out, citing Western sanctions. Nevertheless, a South Korean ship classifier - one of the only societies of the top 13 still providing services to Iranian companies - has sidestepped calls to halt its verification work, saying it was concerned that vessel safety and marine environment protection could be compromised by political issues. "The kind of pressure UANI brings doesn't stop Iran's oil from being transported by sea. It just stops it from being transported responsibly, in a manner where the crews are safe and the associated risks to the environment are minimized," another ship industry source said. "I worry that there will be a price to be paid for these actions, and it likely won't be paid in Iran, or by Iranians." (Editing by Philippa Fletcher) World Russia Syria Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) TheNewWorld wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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