Iran Waives Strait of Hormuz Transit Fees for Russia, Other Friendly Countries
Summary
- Iran said it is applying a transit-fee exemption for some friendly countries, including Russia, for passage through the Strait of Hormuz.
- The Strait of Hormuz is a strategic chokepoint that handles about 20%% of global seaborne crude shipments, and Iran said it has been selectively allowing some vessels to pass while charging a security service transit fee.
- Under a recently proposed bill, ships must obtain government approval and pay the transit fee in Iranian rials, and Iran said the fee was transferred to a government account at the Central Bank of Iran for the first time.
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Iran Grants Exemptions to Friendly Countries
Iran is waiving Strait of Hormuz transit fees for some friendly countries, including Russia.
Kazem Jalali, Iran’s ambassador to Russia, told Russia’s state-run RIA Novosti on April 23 that Tehran is currently granting fee exemptions to some countries.
While he said it was impossible to predict how the situation would develop, Jalali added that the Iranian government would try to keep the exemptions in place for friendly countries.
Iran blocked the Strait of Hormuz on Feb. 28 following attacks by the US and Israel. About 20% of global seaborne crude shipments pass through the waterway.
It has since selectively allowed some ships to transit while charging a fee under the name of security services.
The charge varies depending on the type and volume of cargo. For very large crude carriers, or VLCCs, it is known to reach $2 million.
Under a bill recently submitted to Iran’s parliament, ships seeking to pass through the Strait of Hormuz must obtain government approval and pay the fee in Iranian rials.
Hamid Reza Haji Babaei, deputy speaker of Iran’s parliament, said on April 23 that a Strait of Hormuz transit fee had been transferred to a government account at the Central Bank of Iran for the first time.
Park Sang-kyung, Hankyung.com reporter, highseoul@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
