A large portion of Iran’s shipping fleet has regained Protection & Indemnity (P&I) insurance from Steamship Mutual.

Jonathan Andrews, Director & Head of Eastern Underwriting in Steamship Mutual, said a considerable number of Iranian vessels have taken out insurance form our company and “we are pleased to observe return of Iranian directors to the board of one of the largest and most diverse P&I Clubs in the world.”

Prior to imposition of sanctions against Iran in 2009, Steamship Mutual, as a leading provider of Protection & Indemnity (P&I) insurance, was the main and most favorable insurer of Iran’s shipping fleet.

IRISL has purchased insurance from Steamship Mutual for container ships and multi-purpose vessels though vessels active in the field of international trade will receive top priority.

Earlier in August, during a visit to Tehran of a Norwegian delegation, a Memorandum of Understanding was inked between Iranian Shipping Lines (IRISL) and the Skuld Marine SKULD P&I Club for shipping insurance cooperation.

By virtue of this MoU, different cooperation grounds between the Islamic Republic of Iran Shipping Lines (IRISL) and the Norwegian SKULD P&I Club including providing different types of maritime insurances, considering and pursuing complaints regarding maritime insurances coverage, training personnel and promoting the knowledge and competency of the Iranian experts were discussed and the respective mutually agreed issues were signed by both parties.

IRISL was the first Iranian shipping line to be affected by Western and European sanctions. Presently, IRISL and the National Iranian Tanker Company (NITC) have resume cooperation with Steamship Mutual international club in a bid to revive previous relations.

The Lloyd’s of London insurance market has announced plans to launch offices in Iran – a move that could help the country’s efforts to open its economy to post-sanctions investments.

Inga Beale, the CEO of the world’s leading specialty insurer, was quoted by Iran’s domestic media as saying that Lloyd’s of London would establish branches in Iran’s free trade zones.

To the same effect, two Lloyd’s directors will soon travel to Tehran to discuss the technicalities for this, Beale was quoted as saying by Iran’s state news agency IRNA. She made the remarks in a meeting with Abdolnasser Hemmati, the head of Iran’s Central Insurance Company, during a visit to London on Friday.

Beale further added that Lloyd’s syndicates are interested in returning to the Iranian market. She further stressed that it is important for Iran to remove the problems that obstruct the transfer of money in the insurance industry.

Hemmati, for his part, said the presence of insurance giants like Lloyd’s in Iran is important for the country.

Following the removal of sanctions against Iran in January, indications appeared to show that global insurers were looking into the prospects of penetrating into a market whose worth is estimated to be around $7.4 billion in premiums.

According, European majors including Allianz, Zurich Insurance, Hannover Re and RSA were the first to announce that they would evaluate potential opportunities in the country specifically in its marine, aviation, power generation and energy sectors.

Nevertheless, the only companies that have already taken steps to create a foothold in Iran’s insurance industry have been Germany’s Hermes, Italy’s SACE, and France’s Coface. They have all recently signed agreements to guarantee a certain trade activity with the Islamic Republic, Reuters in October.

An official has reported on an agreement with Germany‘s Hermes Insurance Company to provide insurance coverage for investment projects in Iranian petrochemical industries.

Speaking at a press conference, Director for Investment of National Petrochemical Company (NPC) Hossein Alimorad described the most major plans for attraction of investment to the country’s petrochemical industry saying “a contract has been recently inked with Japan’s Marubeni Corporation to reopen a 320-million-euro Line of Credit (LOC).”

The official also referred to new negotiations with yet another Japanese firm to reopen an LOC worth 640 million euros asserting “talks with the Japanese side are in final stages of drafting the contract which is estimated to be sealed within weeks.”

He also pointed to the visit of an Iranian delegation to Berlin at the invitation of Iran’s Embassy in Germany; “the trip aims to launch a fresh round of negotiations with banks, insurance firms as well as companies willing to make direct investment in the Iranian petchem industry.”

“Final agreement has been reached with Germany’s Hermes Insurance firm in the course of recent talks,” stressed Alimorad noting that the German side has agreed to take out insurance against new investments in petrochemical industries of Iran.

The NPC official also touched upon the held talks with German banks on attracting investment to the industry stating “a short-term scenario has been finalized based on which investment attraction will be performed under the guarantee of NPC as the government’s representative.”

In response to a question on the amount of investment by German companies, NPC’s director for investment said in the first step, agreement has been reached on reopening three billion euros of LOC while three to six more billion euros are expected to be opened in the second phase.

Negotiations have also been conducted with German firms on making 12 billion euros of new investment in Iran’s petrochemical industry

“Negotiations have also been conducted with German firms on making 12 billion euros of new investment in Iran’s petrochemical industry in addition to the three-billion-euro Line of Credit,” reiterated Alimorad adding “two senior officials of a giant German petchem company will soon travel to Tehran in order to finalize earlier talks as well as to evaluate NPC’s proposed economic projects.”

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Report: Facilitating investment in Iran petrochemical industry

Iran has signed initial agreements with Germany’s Hermes insurance firm and Swiss Export Risk Insurance (SERV) to provide cover for transactions with Europe.

The Export Guarantee Fund of Iran (EGFI) signed the agreements in Lisbon on the sidelines of the annual meeting of Bern Union — an association of private and state export credit insurers from around the world, IRNA reported Wednesday.

Under the agreement, the Iranian and European sides will cooperate on “exchange of economic, trade and banking information, reinsurance coverage, coinsurance, and training”.

IRNA quoted EGFI Managing Director Kamal Seyyed-Ali as saying that European export credit insurers were increasingly interested in financing projects after the lifting of sanctions on Iran.

“Given our good track record in repayment of finance installments and Iran’s foreign exchange reserves and the nonexistence of outstanding debts, these institutions are interested in the Iranian financing market despite the problems created by the US Treasury,” he said.

Banks and financial institutions are holding back on moving into Iran because they are fearful of falling foul of American sanctions against the Islamic Republic.

Iran paid off its debt of about €500 million to Hermes

Iran paid off its debt of about €500 million to Hermes, Iranian Ambassador in Berlin Ali Majedi said in June, clearing the way for the resumption of insurance services.

Hermes, which extends insurance coverage to Iranian exports, has been encouraging German banks to normalize ties with Iran.

Last month, the Central Bank of the Islamic Republic of Iran (CBI) said Austrian export credit agency OeKB had raised its cover for Iran transactions to one billion euros.

Raiffeisen Bank and Erste Bank from Austria along with banks from Italy, Switzerland, Germany, Turkey and Belgium have set up shop in Iran, handling transactions with the energy-rich country while major banks have stayed away.

Iran’s trade with the Shanghai Cooperation Organization (SCO) member states in the spring saw 29 percent increase, said a senior official in Iran’s Ministry of Economic Affairs and Finance.

Majid Karimi, director-general of financial and commercial markets study office at the ministry, told IRNA on Saturday that Iran’s non-oil trade with 11 member states of the SCO reach 9.85 billion dollars in spring.

He said that Iran’s non-oil exports to those countries amounted to 5.5 billion dollars with 20 percent increase compared to the same period last year and its imports accounted to 4.35 billion dollars up by 41 percent.

China, India, Afghanistan, Pakistan, Russia, and Uzbekistan topped Iran’s list of exports destinations among the SCO members this spring, according to Karimi.

He highlighted the presence of China and Russia in the SCO as the two permanent members of the United Nations Security Council and India as an emerging economy adds to the significance of Iran’s accession to the regional organization.

Karimi said that the SCO can remove the dollar and euro from transactions between member states and plan for a single currency in the future, noting that Iran has offered using insurances and financial channels.

The SCO can also adopt proper approaches on sustainable collaborations on energy, as two world’s biggest energy producers (Russia and Iran) and two world’s biggest energy consumers (China and India) are members of the organization.

Source: One of the most misunderstood and undervalued countries of the world, my recent trip opened my eyes to a land of hospitable people, beautiful architecture, amazing food…and very few tourists.

This guide is designed to inspire travel to Iran and give practical travel tips that are hard to find for a country so rarely visited, with the second half outlining the best ways to get to Iran using your points. Make sure to read The Essentials section at the end of this piece.

All of the following images were taken by the author and should not be reproduced without permission.

1. Meet the friendliest people in the world

Word is that Iranians are the amongst the most genuine and approachable people in the world. Is it true?

I had high expectations…and they were met. I would put Iranians in the same category as the Japanese and Americans for hospitality.

Never before in my travels had I ever been stopped on the street so many times (in a non-intrusive way) to be asked:

• Where are you from?
• What did you think of Iran before you came?
• What do you think of it now?

2. Visit the most beautiful city in the world

Big call? Probably. There are many beautiful cities in the world – Kyoto, Sydney, Paris – but Iran’s second-biggest city and main tourist drawcard Isfahan definitely deserves a spot up there.

Built on the River Zayandehrood, even with its dry desert climate it is teeming with green parks, plenty of shade on walks along the river, beautiful bridges, and historic mosques, churches and palaces. If you are going to visit one place in Iran, this is the place to go.

3. Watch the sunset over the dunes in the middle of the desert

Yazd is the gateway desert city of Iran, with day and overnight tours into the desert.

The only sound we heard whilst watching the suns rays descend over the flowing desert dunes was a light breeze carving sand into new dune formations. Truly breathtaking.

4. Eat till your heart’s content

Foodies will love Iran, with primary dishes being lamb, mutton, chicken, eggplant, lentils, cheese, yoghurt, rice, dates and pita bread. Vegetarians will be slightly more limited in choices, but it is not prohibitive.

Having said that, all breakfasts tend to be vegetarian, made up of feta cheese, tomatoes, cucumbers, pita bread, yoghurt and watermelon.

Foodies of all persuasions should be sure to visit the moderately-priced vegetarian restaurant in the Iranian Artists’ Forum in Honarmandan Park (also known as Artists’ Park). The second time we went back the waiter brought us an extra course for free and two university professors at a nearby table joined us for lunch.

5. Visit some of the least tourist-filled mosques in the world

Even during the peak travel month of May, it was hard to encounter many other tourists at the majestic mosques that Iran puts a lot of effort into keeping beautiful.

Of course, be respectful of prayer times, take off your shoes and remember that there are separate areas for men and women. Be sure to check the opening times of mosques on the internet or with your accommodation so as to not be caught out by them being closed.

Mosques in Isfahan are the most expensive to get into (around $8 each), but are also the most beautiful.

6. Visit the ceremonial capital of the Persian Empire

Persepolis (literally ‘The Persian City’) brought together the 28 nations of the Persian Empire (at its peak) for ceremonies and was known as the United Nations of the empire.

Located 90 minutes east of Shiraz, choose the more reasonably-priced accommodation options in Shiraz rather than stay near the UNESCO-protected site, but avoid the midday and afternoon heat by catching a private taxi out for the 8am opening. A tour guide is highly recommended and can be organized upon arrival at the site.

7. Transport options are cheap and relatively efficient

Most transport is by road, so if looking to save money, go by bus, but we found it funny/frustrating how many times people were moved around the bus by the bus driver to make sure that women and men were not seated together. This strict policy is more the work of the government rather than the considerably liberally-minded population.

If you have a bit more money, then another option is a private driver, which will be faster and more comfortable, but you will miss out on the local bus experience.

The 10-12 hour overnight Chinese-built train between Tehran and Shiraz is highly recommended at about $25 for a seat which converts into a bed in a four-person single-sex air-conditioned compartment. Bring your own food – disappointing food on the train.

The essentials

• Safety: apart from the state execution of a prominent Saudi figure triggering protests in Tehran earlier this year, there is a reason that we rarely hear of violence and terrorist attacks in Iran compared to much more dangerous Middle Eastern countries like Turkey, Israel and Egypt. I can honestly say that I felt safer and less on-edge in Iran than in some European capitals like London, Paris and Brussels, and petty theft is quite uncommon. Of course, please take into account official government warnings and check that your travel insurance will be valid in Iran.
• Best time to go: as you would expect from a country with climatic extremes, spring (March to May) and autumn (September to October) are the best times to visit. We went in mid-May and the weather was gloriously sunny and warm-to-hot, without being oppressive.
• Money: take all the cash you may need for the trip…and then some. International cards do not work at Iranian ATMs, so take clean, relatively new US dollars, euros or pounds (not that they are worth much at the moment) to exchange at moneychangers on the street. Be sure to ask your hotel for the going rate before venturing out to change. In May 2016, it was 1 USD = 34,000 rials and 1 EUR = 38-39,000 rials. You can also pay in USD or EUR at most establishments, with change given in rials. Note that most prices are in ‘tomans’, which is one zero less than the price in rial, e.g. 1 USD = 34,000 rials = 3,400 tomans.
• Visas: Australians and New Zealanders are eligible to receive a visa on arrival at the major airports in Iran, including Tehran, Isfahan and Shiraz. You must bring along a copy of your travel insurance which states the dates of coverage as well as clearly indicating it covers travel in Iran. You will be required to pay a visa fee of about €145; most EU nationals pay €75, but as Australia and NZ are allies of the US, that’s where the difference comes from. If you have dual citizenship, try to see which passport gives you a cheaper visa fee. You also need to have a confirmed hotel reservation or letter of invitation printed out, and they will call your hotel to make sure it is legitimate. You do not need hotel bookings for your whole trip, just the first night or two. Expect this process at the airport to take 1-2 hours. Most international flights arrive between midnight and 6am, which is highly inconvenient, but just breathe and be patient. As of this year, any traveller eligible for the ESTA visa waiver program for the US that has travelled to Iran in the past five years will need to apply for a tourist visa at their nearest US embassy or consulate when travelling to the US.
• Money and costs: Budget Your Trip estimates that in Iran you will spend about the same as what you would in Thailand or Mexico, half of what you would in Greece, or double what you would in India. Tehran is surprisingly pricey, especially for accommodation, but the real gems of Iran are outside the capital, so you shouldn’t be spending too much time there anyway. For basic private accommodation for two with breakfast included (always), intercity bus or train transport, mid-range restaurant meals and an attraction or two a day, we spent an average of $60 AUD/NZD per person per day over ten days.
• Drinking water: Water is surprisingly perfectly safe to drink from the tap and Iran has the widest network of public drinking fountains in streets, parks, bus stations, etc that I have seen anywhere in the world.

Iran is making rapid forays into the European crude oil market and selling its parcels to countries such as France, Italy, Greece and Spain, UK-based global shipping consultancy, VesselsValue said.

“Following the removal of sanctions, new players have emerged in the mix,” VesselsValue said in a report. Iran’s crude oil shipments have been delivered to destinations ranging from Malaysia and Singapore in Asia to Syria in Africa, it said, according to Platts.

In 2016, the number of voyages to deliver crude from Iran to France was estimated at 21, while Italy, Greece and Spain took 15, 14 and 13 shipments respectively, it said. This includes shipments in VLCC, Suezmaxes and Aframaxes.

In July 2012, the European Union had banned the import of Iranian crude by member countries and also the provisions of EU-linked insurance, which included protection and indemnity cover for any shipments of Iranian crude, irrespective of destination. The sanctions were relaxed in January last year.

There has also been a significant change in the geographical mix of owners whose ships were used to lift Iranian cargoes of crude.

Prior to the lifting of sanctions, the National Iranian Tanker Company (NITC) was the largest provider of tonnage to load cargoes from Iran, in addition to Iran-o Hind, Idemitsu Tanker, JX Ocean and KLine.

The Iranian ships were provided local insurance cover but there were always concerns over the possibility of any potential liability in event of maritime accidents in waters of importing countries which were permitted to purchase crude from Tehran.

During the period of sanctions, India permitted Iranian ships to call at Indian ports based on Tehran’s local insurance cover, China used ships of domestic companies while the Japanese government provided insurance cover only for VLCCs.

South Korea and Taiwan also took deliveries of cargoes purchased on a cost and freight (CFR) basis.

Now, “the group of shipowners lifting crude from Iran has changed dramatically to include those from Greece and Belgium”, VesselsValue said.

“The influx of owners from Greece has significantly increased the number of Suezmaxes plying on the ex-Iran voyages to 81 last year, compared with 15 in 2015,” the report said.

While NITC continues to be the market leader in terms of the number of ships deployed for loading crude from Iran, other companies with ships loading from the country include Dynacom, Delta Tankers, Euronav, Polembros, COSCO, Avin International, Olympic Shipping and Management, New Shipping and Thenamaris, it said.

Last month, two Iranian VLCCs, the ‘Huge’ and the ‘Snow’ delivered a mix of the country’s heavy and light crude grades to Shell at Rotterdam, according to trade sources and S&P Global Platts.

In late January, Iran’s Oil Minister Bijan Namdar Zanganeh said that the country was producing 3.9 mbd crude and was set to reach its 4 mbd target by the end of the Iranian year on March 20.

This will mark the return of Iran’s output to levels last seen before 2012, when international sanctions were imposed on the country.

A Platts survey released on February 6 estimated Iranian production at 3.72 mbd in January, up 30,000 bpd from December.

While cuts in crude production have been initiated under an OPEC-led agreement, Iran is allowed to boost its output to 3.797 mbd. If this materializes, Iran’s output would exceed its OPEC quota by more than 100,000 bpd.

This is expected to translated into more crude shipments from Iran. According to VesselsValue, the seaborne exports of Iranian crude are rising significantly.

The number of crude laden shipments from Iran increased to 563 last year — up from 66 in 2012 and 277 in 2015, their data showed.

NITC head announced that 35 Iranian tankers have been leased out to oil companies in Europe like Spain’s Cepsa and Eni of Italy.

New Managing Director of the National Iranian Tanker Company (NITC) Sirous Kianersi described latest status of oil displacement agreements between NITC and huge European oil companies saying “so far, 35 contracts have been inked with European sides for taking out leases on 35 Iranian tankers.”

The official stated that the 35 lease contracts had been signed with oil giants from various EU states like Greece, Spain, Italy and the Netherlands asserting that the deals were spot contracts which were sealed for transport of crude oil.

He highlighted that Iranian tankers enjoyed highest standards for transference of crude oil in ports and oil terminals of the European Union (EU); “so far, agreements have been signed with majority of European oil firms like Spain’s Cepsa, Italy’s Eni in addition to Greek and Dutch companies.

In view of post-JCPOA conditions and removal of restrictions, more agreements will be sealed with European oil giants for displacement of crude oil, the official reiterated.

Last week, Kianersi had reported on berthing of Iranian oil tankers at EU oil terminals stressing that the first Iranian tanker had tied up at a Spanish socking site.

For the first time ever, an Iranian tanker, which has been lent out to a large Spanish oil company, moored at Algeciras port of the European state.

An Iranian oil tanker has called at a European port for the first time since the lifting of sanctions last January, said managing director of the National Iranian Tankers Company (NITC) said.

Sirous Kianersi added the first NITC tanker leased to a major Spanish oil company docked at the Port of Algeciras just recently, reported IRNA on Wednesday.

More NITC tankers are heading to other European ports, he said, adding two vessels are currently en route to the Netherlands.

NITC is the biggest tanker company in the Middle East and one of the largest in the world with a capacity of 15.5 million tons per year.

Managing Director of Iran’s Port and Maritime Organization Mohammad Saeednejad also said on Wednesday that the lifting of sanctions has allowed Iranian ships to fully resume operations to Asian, European and American ports.

Since October, Iranian VLCCs have reportedly completed 32 voyages delivering around 70 million barrels. China accounted for 13 voyages and India for 12 others.

As many as 17 international shipping lines have resumed their calls at Iranian ports which were deserted by and large during the sanctions, Saeednejad said.

Iranian VLCC fleet, which had been used as floating storage, has started to reappear on international trading routes. Since October, more than 20 NITC-operated VLCCs have returned to the market compared to just 13 in October.

Iran’s oil exports hit 2.04 million barrels per day in November, recovering from a decline of around one million barrels per day during the sanctions. Over the last 12 months, European customers have resumed lifting Iranian crude oil, with France, Spain, Greece, Italy, the Netherlands and Taiwan taking at least one shipment.

According to ship tracking data, the number of Iranian VLCCs in storage has fallen from 16 to 7 units, which equals to a reduction of 20 million barrels. As much as 15 million barrels of crude oil is estimated to remain in floating storage on NITC’s VLCCs — down from an estimated peak of between 40 and 50 million barrels.

On Tuesday, a report said global ship insurers were about to resume near full coverage for Iranian oil exports from next month without involving US-domiciled reinsurers.

Restrictions on US firms handling Iranian goods had greatly limited the number of reinsurers of cargoes, but the new arrangements, which essentially allow re-insurance of ships without the involvement of US firms, should boost the number of eligible shipments, Reuters reported.

“There will be no US-domiciled reinsurer participation on the 2017 IG reinsurance program,” the news agency quoted Andrew Bardot, secretary and executive officer at the International Group (IG) of P&I Clubs in London, as saying.

India‘s annual oil imports from Iran surged to a record high in 2016 as some refiners resumed purchases after the lifting of sanctions against Tehran, according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts.

The sharp increase propelled Iran into fourth place among India’s suppliers in 2016, up from seventh position in 2015. It used to be India’s second-biggest supplier before sanctions.

India import 473,000 barrels per day (bpd) of oil from Iran in 2016

For the year, the world’s third biggest oil consumer bought about 473,000 barrels per day (bpd) of oil from Iran to feed expanding refining capacity, up from 208,300 bpd in 2015, the data showed.

In December, imports from Iran trebled from a year earlier to about 546,600 bpd.

In 2015 refiners slowed purchases due to sanctions which choked payment routes, insurance and halved Iran’s exports.

Indian refiners Reliance Industries, Hindustan Petroleum, Bharat Petroleum and HPCL-Mittal Energy Ltd (HMEL) last year resumed imports from Tehran, attracted by the discount offered by Iran.

“In most of 2016 there was a fight among Gulf producers to increase their market share and lifting of sanctions against Iran has intensified that fight,” said Ehsan ul Haq, senior analyst at London-based consultancy KBC Energy Economics.

In April-December, the first nine months of this fiscal year, Iranian supplies to India averaged a record 530,300 bpd, up from about 400,000 bpd before sanctions tightened against Tehran.

India’s 2016 Iranian oil imports were the highest in at least six years, according to the Reuters data.

Government data going back over a longer period shows the average was the highest since the 2001-02 fiscal year.

Overall, India imported 4.3 million bpd oil in 2016, up 7.4 percent from the previous year.

Rising imports from Iran and Iraq lifted the Middle Eastern share in India’s crude diet to 64 percent in 2016, reversing a declines in recent years, partly due to rising prices for Atlantic Basin oil tied to Brent.

The average premium for Brent jumped against Dubai crude to more than $3 a barrel in 2016 from around $1.80 in 2015.

“In 2016 Iran ramped up its output to regain market share while Iraq segregated its production into Basra Light and Heavy to attract customers. Basra Heavy was sold at a discount, making it more attractive than rival grades,” said Haq.

Iran’s share of Indian oil imports surged to 11 percent in 2016 from 5 percent in 2015.

Saudi Arabia remained the top supplier to India last year followed by Iraq and Venezuela.

Imports from Latin America declined for a second year, with its share of imports shrinking to about 16 percent from 18 percent, while Africa’s share fell to about 15 percent from a fifth.

“Low oil prices brought down production in Latin America while Nigerian barrels were impacted by violence in the Niger Delta. Also falling US oil output impacted trade flows, with some Latin American and African oil finding a place in the US,” Haq said.