Europe’s reluctance to purchase gas from Iran is rooted in geopolitics, nuclear diplomacy, and human rights concerns, with sanctions imposed by the European Union and the United States significantly hindering Iran’s ability to export its natural resources.
Why Europe Doesn’t Buy Gas from Iran
The European Union has expanded its energy supply diversification efforts in recent years, aiming to reduce its reliance on Russian gas. However, despite being one of the world’s largest natural gas reserves, Iran remains excluded from the EU‘s energy trade.
The Complex Geopolitics of Energy Trade
The reasons behind Europe‘s reluctance to engage with Iran are rooted in geopolitics, nuclear diplomacy, and human rights concerns. ‘Sanctions imposed by both the European Union and the United States have significantly hindered Iran’s ability to export its natural resources to the continent.’ Sanctions imposed by both the European Union and the United States have significantly hindered Iran‘s ability to export its natural resources to the continent. These sanctions not only limit trade but also deter investment in Iran‘s energy infrastructure, making it unprofitable for companies to extract and transport oil and gas to Europe.
The Role of Sanctions in Limiting Energy Trade
The Islamic Republic of Iran has a complex system of leadership, with the Supreme Leader holding significant power.
The Supreme Leader is elected by the Assembly of Experts for a lifetime term.
Iran's presidents have limited powers and are directly elected by the people.
The country's leadership has been dominated by two main factions: the moderates and the hardliners.
Ayatollah Khomeini founded the Islamic Republic in 1979, and his successor, Ali Khamenei, has held the position of Supreme Leader since 1989.
Iran's leadership has faced challenges from both internal and external forces.
Sanctions are a major obstacle to Iran‘s participation in the EU‘s energy market. The European bloc is bound by its own sanctions as well as US-led restrictions targeting Iran‘s energy sector. These measures penalize non-US companies that engage with Tehran‘s oil and gas industries, making it difficult for them to operate in the region.
A Shadow Fleet of Tankers
Despite sanctions, Iranian oil and liquefied natural gas (LNG) continue to find buyers in countries like China and Malaysia, which are outside the reach of US enforcement. This is achieved through a ‘shadow fleet’ of tankers that operate off radar and transfer cargo mid-sea to disguise their origin.
The shadow fleet of tankers refers to a group of oil 'tankers' that are not registered or tracked by official authorities.
These vessels often operate in the shadows, evading regulations and oversight.
According to a 2020 report, there were over 6,000 unregistered tanker ships worldwide.
The lack of transparency and accountability raises concerns about oil smuggling, piracy, and environmental damage.
The Impact on European Energy Security
The EU‘s reliance on Russian LNG has increased significantly since Russia‘s full-scale invasion of Ukraine in 2022. In contrast, Iranian energy remains largely absent from the EU‘s calculus. This is despite Iran possessing the world’s second-largest proven gas reserves and having virtually no energy trade with Europe.
A Divided Leadership
Inside Iran, views on engaging with the West are divided. Moderates and reformists have pushed for concessions that could help reconnect the country to the international community, including potential revisions to its support for regional militias. However, ‘the situation remains complex,’ and it is unclear whether the necessary changes will occur under Iran‘s current leadership.
The Future of US-Iran Nuclear Talks
The ongoing US–Iran nuclear talks may offer a pathway to normalization, but it is uncertain whether these negotiations will result in significant changes. Neither side appears fully credible, and the United States has repeatedly shifted its stance on sanctions, making it difficult to predict their impact.
Can Europe chart its own course?
While Brussels technically has the option to pursue an independent energy policy if US–Iran nuclear talks collapse, it is unclear whether this would occur. The trans-Atlantic alliance remains deeply ingrained in European politics, and the continent’s increasing dependence on LNG from the US limits its ability to diverge from the United States.
A Path Forward?
Ultimately, the future of Iran–Europe energy relations depends on a range of factors, including the outcome of US–Iran nuclear talks and the willingness of Iranian leaders to engage with the international community. However, one thing is clear: Europe‘s energy security will continue to be shaped by its complex relationships with Russia, Qatar, Algeria, and other global energy players.
Conclusion
The exclusion of Iran from Europe‘s energy trade remains a puzzle. Sanctions, geopolitics, and human rights concerns all contribute to this situation. While there are opportunities for change, the path forward is uncertain.
The United States and European Union have imposed various sanctions on Iran since the 1979 Islamic Revolution.
The primary reasons for these sanctions include 'Iran's nuclear program,' human rights abuses, and support for terrorism.
The Joint Comprehensive Plan of Action (JCPOA) in 2015 lifted some economic sanctions, but new restrictions were reimposed following the US withdrawal in 2018.
Sanctions have had a significant impact on Iran's economy, with estimates suggesting a loss of up to $50 billion annually.
- dw.com | Why doesnt Europe buy gas from Iran?
