ID :
206767
Tue, 09/13/2011 - 08:22
Auther :
Shortlink :
https://oananews.org//node/206767
The shortlink copeid
Will sanctions rattle Syria?
TEHRAN, Sept. 13 (MNA) -- Sanctions will have a short-term impact on Syria’s economy, but the country will then redouble its efforts to find new customers for its oil and gas, according to economic and energy expert Amir Hossein Tavakkoli.
Tavakkoli, who is based in Tehran, made the remarks in an interview with the website Iranian Diplomacy in which he also discussed the situation in Libya.
Following is the text of the interview:
Q: What is the impact of the fall of the Libyan regime on the current situation of the global economy?
A: Libya’s former regime has been overthrown, but it is still not clear exactly what kind of system is going to replace it. This is something more important than perhaps the fall of (Muammar) Gaddafi’s 42-year dictatorship.
The fall of the dictatorial regime in Libya will bring about huge economic, social, and cultural developments in North Africa and other Muslim countries, but only provided that the new system will be accepted as a legitimate and democratic government by all Libyan tribes and groups.
Q: Can the resumption of Libyan oil exports lead to lower oil prices in the global market?
A: Libya’s role in the global economy was not so important, and it will continue to be the same in the future. Libya’s total oil production in terms of volume was about 1.6 million barrels per day, which was not so influential in the market structure.
The oil installations in the country have been seriously damaged over the past six months of civil war. (But) the presence of international oil companies could help Libya quickly compensate for the damage. However, the process of reconstruction will take time, and it is not expected that the resumption of oil exports will have an immediate impact on global oil prices.
Q: What about Syria? Could the escalating crisis in the country lead to instability in the oil markets as well?
A: Again, like Libya, Syria’s internal crisis will have no serious economic impact on the world economy. The country does not have a significant place among the leading oil exporters of the world, and unlike other countries of the region, such as Kuwait and Iraq, Syria does not have a large amount of strategic oil reserves.
Q: To what extent does Damascus rely on oil revenues? And could oil sanctions lead Syria into an economic dead end?
A: Syria’s oil revenue plays an important role in the management of the national economy because it is about one third of the total national income. But since the United States and its allies imposed sanctions on Damascus, the country will look for new consumers for its oil and gas. China is the largest foreign investor in Syria, and the sanctions will create better opportunities for Chinese companies to increase their investments in the country. However, the Syrian government will surely be worried about the sanctions because they will have a short-term impact on its economy.
Tavakkoli, who is based in Tehran, made the remarks in an interview with the website Iranian Diplomacy in which he also discussed the situation in Libya.
Following is the text of the interview:
Q: What is the impact of the fall of the Libyan regime on the current situation of the global economy?
A: Libya’s former regime has been overthrown, but it is still not clear exactly what kind of system is going to replace it. This is something more important than perhaps the fall of (Muammar) Gaddafi’s 42-year dictatorship.
The fall of the dictatorial regime in Libya will bring about huge economic, social, and cultural developments in North Africa and other Muslim countries, but only provided that the new system will be accepted as a legitimate and democratic government by all Libyan tribes and groups.
Q: Can the resumption of Libyan oil exports lead to lower oil prices in the global market?
A: Libya’s role in the global economy was not so important, and it will continue to be the same in the future. Libya’s total oil production in terms of volume was about 1.6 million barrels per day, which was not so influential in the market structure.
The oil installations in the country have been seriously damaged over the past six months of civil war. (But) the presence of international oil companies could help Libya quickly compensate for the damage. However, the process of reconstruction will take time, and it is not expected that the resumption of oil exports will have an immediate impact on global oil prices.
Q: What about Syria? Could the escalating crisis in the country lead to instability in the oil markets as well?
A: Again, like Libya, Syria’s internal crisis will have no serious economic impact on the world economy. The country does not have a significant place among the leading oil exporters of the world, and unlike other countries of the region, such as Kuwait and Iraq, Syria does not have a large amount of strategic oil reserves.
Q: To what extent does Damascus rely on oil revenues? And could oil sanctions lead Syria into an economic dead end?
A: Syria’s oil revenue plays an important role in the management of the national economy because it is about one third of the total national income. But since the United States and its allies imposed sanctions on Damascus, the country will look for new consumers for its oil and gas. China is the largest foreign investor in Syria, and the sanctions will create better opportunities for Chinese companies to increase their investments in the country. However, the Syrian government will surely be worried about the sanctions because they will have a short-term impact on its economy.
