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Trafigura

Trafigura

Industry: 
Energy
Value of USG Contracts: 
1
States: 
CT
FL
TX
Country: 
Switzerland
Contact Information: 
Sources: 

"New York's top financial regulator has expanded a probe into whether reinsurance companies have written policies on international trade with Iran, which could potentially violate new U.S. sanctions. In a letter posted to its website on Wednesday, the state's Department of Financial Services asked reinsurers to explain their dealings with entities and people that have ties to Iran. The department also asked reinsurers to explain procedures in place to ensure compliance with the Iran Freedom and Counter-Proliferation Act of 2012, which took effect on July 1. Twenty reinsurers are getting the letter, including Hannover Re, Lloyd's of London and Swiss Re, a person familiar with the matter said. Those reinsurers were among those contacted last month by the regulator, whose superintendent is Benjamin Lawsky, over their dealings involving Iran. Lawsky opened his probe after news reports that Switzerland-based Glencore Xstrata Plc and Trafigura AG had supplied thousands of tons of alumina to an Iranian firm that provided aluminum for Iran's nuclear program. The new law bans financial services companies that do business in the United States, such as insurers and reinsurers, from providing services to companies that trade with Iran." (Reuters, "NY Regulator Expands Probe into Reinsurers' Iran Ties," 7/24/2013)

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"Switzerland-based Trafigura on Monday became the second major trading house to confirm that it had traded with an Iranian firm that the European Union says has links to Iran's nuclear program... Trafigura, the world's third-biggest trader in raw materials, confirmed it had supplied the Iranian Aluminum Company (Iralco) with alumina in exchange for aluminum, after an industry source said Glencore was not the only major firm sending such shipments. 'We can confirm that Trafigura has traded with Iralco in the past. In October 2011, a physical swap agreement was reached whereby Trafigura provided alumina to Iralco in return for aluminum for Trafigura to export worldwide,' the trader said in an emailed statement. 'No deliveries have been made or exports received since new EU sanctions were published in December 2012. The Trafigura Group companies are compliant with national and international law where applicable,' it added... A spokeswoman at the Swiss Economics Ministry declined to comment on the Trafigura contract, citing commercial secrecy. She said that Iralco was not currently subject to sanctions in Switzerland... Trafigura, which is currently considering listing subsidiary Puma Energy, is chaired by Claude Dauphin, who was a protege of veteran oil trader Marc Rich... In a settlement, Trafigura agreed to pay a $5 million fine after one of its tankers was intercepted on suspicion of carrying illegal Iraqi crude in 2001. It was not charged with smuggling and denied wrongdoing." (Reuters, "Second trading firm says it supplied Iranian firm linked to atomic work," 3/4/2013)

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"Switzerland has previously expressed displeasure about sanctions against Iran, largely becaues it has represented U.S. interests in Iran for over 30 years. And, while Switzerland no longer imports Iranian oil, estimates show that one third of the world’s oil deals are brokered by five Swiss-based commodity-trading firms – Glencore GLEN.LN +1.25%, Gunvor, Vitol, Trafigura and Mercuria." (The Wall Street Journal, "Treasury’s Cohen Heads to Switzerland, Turkey for Sanctions Talks," 8/31/2012)

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"Open sources reported that Trafigura sold gasoline to Iran in 2009 and 2010, but subsequently stopped in 2010." (U.S. Government Accountability Office, Report: "Firms Reported in Open Sources to Have Sold Iran Refined Petroleum Products between January 1, 2009 and June," September 3, 2010)

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"Due to limited refining capabilities, Iran imports approximately 40% of its domestic gasoline consumption. Iran is the second-largest importer of gasoline in the world. That gasoline is supplied primarily by five companies: the Swiss-Dutch energy trading giants Vitol and Trafigura, the Indian multinational Reliance Industries, the Swiss trader Glencore and the French energy firm Total." (The Wall Street Journal, "Hitting Tehran Where It Hurts," 7/13/09)

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"Because of a lack of domestic refining capacity, oil-rich Iran is dependent on gasoline imports to meet about 40 percent of domestic consumption. Iran gets most of its gasoline imports from the Swiss firm Vitol, the Swiss/Dutch firm Trafigura, France's Total, the Swiss firm Glencore and British Petroleum, as well as the Indian firm Reliance." (Agence-France Press, "US lawmakers target Iran gasoline imports," 6/23/09)

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"In recent months, Iran has, according to the respected trade publication International Oil Daily and other sources including the U.S. government, purchased nearly all of this gasoline from just five companies, four of them European: the Swiss firm Vitol; the Swiss/Dutch firm Trafigura; the French firm Total; British Petroleum; and one Indian company, Reliance Industries." (The Wall Street Journal, "How To Put The Squeeze On Iran," 11/13/08)

Response: 

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