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Friday, April 17, 2009

Kenya Agrees to Buy Iranian Oil on Credit

The Deal alegedly calls for 90 day payment delays. This will place Kenya of an ongoing line of credit debt to Iran.

-Shimron Issachr

Iran will reportedly supply Kenya with 4 mm tons of oil annually as a part of range of deals signed in February between the two states.

The Kenyan government rejected the allegations that Iran offered its crude oil to Kenya at 10 % below the market price. It says Iran, the world's fourth largest oil exporter, has agreed to offer Kenya a 90-day credit period to pay its debt to Tehran.

Iranian President Mahmud Ahmadinejad visited east Africa's largest economy on February 25 and signed a range of economic agreements with his Kenyan counterpart Mwai Kibaki.

The Iranian president said it was of great importance for Tehran to promote political and economic ties with Kenya.

Iran currently exports industrial oil, carpets and chemicals to Kenya and imports tea.

Kenya plans to add beef and fish products to its list of exports to Iran.

Analysts believe the new agreements could increase the volume of Iran-Kenya trade to $ 500 mm by the end of next year.

Iran is helping Kenya on several major energy and infrastructure projects.

The two countries have also agreed to establish direct flights between Nairobi and Tehran, to set up a shipping line between the Iranian port of Bandar Abbas and the Kenyan port of Mombasa and to build an Iranian trade centre in Nairobi.

The Rest @ WorldNews

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