International links through Trade on the Axis of Oil Swap

Document Type : Research Paper

Authors

1 Assistant Professor of Law, Islamic Azad University, North Tehran Branch

2 M.A. in Trade Law, Islamic Azad University, Tehran North Branch

Abstract

The 1990s is the beginning of oil exports for the economic development of newly independent States in Central Asia. Due to the lack of access to international waterways and the unprofitable export of crude oil to the airplane or its transit through land routes, these countries have inevitably resorted to a swap of oil, due to the cost-effectiveness of the route of transportation of oil from Iran for the purpose of sea communication through the Oman Sea and the Persian Gulf with the oceans. This experiment began oil operations in Iran, from 1996, with the continuation of the oil contract, Swap has played an important role in economic relations between Iran and the countries of Central Asia. However, Iran has stopped swap in 2010 as well as the disproportion of the level of crude oil production in Central Asian countries relative to the high capacity of its transfer to consumer markets, and, in addition, reducing its global prices and mutually increasing gas production capacity, has had a negative impact on the growing trend of swap economic relations. However, Swap is a cross-selling tool for switching goods and it is also used in oil operations and has led to a saving on the cost of transferring oil and products inside the country and reduces transport and road and rail transport costs. By importing oil products or petroleum products produced by the Caspian littoral countries in one of the border areas of Iran and consuming them internally and exporting oil or its products with the same specifications from the other exit frontier in non-sanctioned conditions of Iran’s oil trade, Swap will expand trade relations, strengthen economic and political relations, and promote the national security of these countries.

Keywords


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