Companies pull back from Iran

NY Times:

Royal Dutch Shell and Ingersoll-Rand this week became the latest major corporations to announce they would cease or cut back business operations in Iran.

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On Wednesday, Shell announced that it had stopped selling gasoline to Iran, which despite its vast petroleum reserves has antiquated refineries that leave it dependent on gasoline imports. Shell said it had not supplied gasoline since last year.

“We have stopped all sales of gasoline to Iran,” said David Williams, a Shell spokesman at corporate headquarters in The Hague.

The decision, however, does not apply to Shell’s other business interests in Iran.

Royal Dutch Shell signed an $800 million deal in 1999 to develop two huge oil fields. The project was completed in 2005, but Shell continues to receive payments as a result of its work.

Shell has a Iranian natural gas development project in the works, but it is awaiting the results of a feasibility study before determining whether to proceed with it, Mr. Williams said.

Ingersoll-Rand P.L.C., a multinational company that makes air compressors and cooling systems, said Monday that it would no longer allow its foreign subsidiaries to sell parts or products to Iran. The company announced its decision in a letter to United Against Nuclear Iran, a group based in New York that lobbies against companies that do business with Iran. The group was also instrumental in trying to get Shell to withdraw.

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Three other major sellers of gasoline to Iran have ceased doing business with the regime. It would be interesting to see an analysis of what percentage of their impors have been effected by the decision to halt sales. At some point it might reach critical mass and effect the countries ability to supply the civilian market.