Is Shell a sanctions buster in Iran?

LONDON, Sept. 28 (UPI) -- Royal Dutch Shell moved deeper into the Iranian energy market as others fled from the pressure of economic sanctions, trading records indicate.

The United States and the European Union moved in July to pass unilateral sanctions that target the Iranian energy sector as punishment for a controversial nuclear program. International traders such as Vitol fled Iran as sanctions pressures mounted.

Shell, however, increased its business with state-owned Iranian oil companies, British newspaper The Guardian reports, citing "sensitive" trading documents.

The energy company through a spokeswoman said it wouldn't comment on it trading activities but stressed it was operating in accordance "with all legislation."

Records from Shell's trading company Stasco show that from May to August, the company increased the amount of oil it purchased from Iran by 27 percent compared with the previous three months.

French oil company Total and Italy's API also moved deeper into the Iranian crude market as others fled the pressure from sanctions, The Guardian adds.

The Guardian said it found that traders who stayed in the Iranian market enjoyed a substantial discount as well.

The newspaper notes that Shell isn't accused of illegal activity in Iran because the economic sanctions don't specifically ban the import of Iranian oil.

Iran is the fourth largest oil exporter in the world.