NITC gets its third party liability insurance and pollution cover from the P&I Club market, which are marine insurers owned by shipping clients.

“NITC has found itself caught up in a situation of tightening sanctions as a totally innocent party, along with some 100 other Iranian shipping companies,” NITC chairman and managing director Mohammad Souri said in a statement.

The privately-owned group said its four P&I clubs had declined to renew cover for the 2011/2012 policy year, adding it hoped for an early resolution of this matter and “speedy renewal of cover” from the international group of clubs.

“In the meantime, the company has been obliged to ensure that alternative P&I arrangements are in place for all ships trading in its international fleet, up to the required level of $1 billion of pollution cover for each incident,” Souri said.

“That cover is being provided by a mixture of fixed-premium insurers and other insurance companies based outside the EU, with adequate and suitable reinsurance provision,” he said without naming the providers.

A senior NITC official said in November that a revised European clause on Iranian sanctions was expected to mean that it would be able to secure insurance cover in the EU.

Souri said on Friday that NITC’s fleet continued to trade normally in the service of international oil majors.

“The company ... respects all international conventions and has never been engaged in any activity prohibited by the US , UN or EU,” he said.

“The question of sanctions which might affect NITC’s P&I arrangements has been pending for some six months, and we would like to thank all parties involved for their patience and support during this very difficult period.”