NeutralCitizen
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The US exempted Japan and 10 EU nations from financial sanctions because they have significantly cut purchases of Iranian oil, but left Irans top customers China and India exposed to the possibility of such steps.
The decision means banks in these countries have been given a six-month reprieve from the threat of being cut off from the US financial system under new sanctions designed to pressure Iran over its nuclear programme.
The list did not include China and India, Irans top two crude oil importers, nor US allies South Korea and Turkey, which are among the top-10 consumers of Iranian oil.
Japan, China and India combined buy close to half of Irans crude exports of 2.6mn bpd, providing crucial foreign exchange for the Opec member.
But the US sanctions and an EU oil embargo have cut Iran out of financial networks, making it difficult to transfer funds to pay for trade and disrupting some oil shipments because of the difficulty of securing shipping insurance. Domestic prices in Iran have spiraled higher and the rial has slumped in value.
Japanese Finance Minister Jun Azumi welcomed the US decision, saying yesterday that Japan would continue to cut its imports of Iranian oil at a set rate in the future.
The decision takes account of Japans steps on Iranian oil, including its future response, he told reporters.
Indeed, the Japan government wants the nations crude buyers to cut Iran imports by 10% to 20% a year, Akihiko Tembo, the chairman of the Petroleum Association of Japan, said.
A US official held up Japans estimated 15%-22% cut in oil purchases from Iran in the second half of last year as an example for other nations.
Japan was a model, Carlos Pascual, State Department Special Envoy and Coordinator for International Energy Affairs, told lawmakers, noting the cuts were made even after the country suffered an earthquake that caused a civil nuclear disaster.
If Japan was able to do what it did ... that should be an example to others that they could potentially do more.
Still, Pascual declined to set a benchmark that countries could use to secure an exemption. The law says they must significantly reduce Iranian oil imports and continue to do so to win exemptions, he said.
Underlining US efforts to tighten the financial noose around Iran, a state department official said 12 other countries may eventually be subject to US sanctions unless they cut Iran crude purchases. He did not list them. South Korea will hold another round of talks soon with the US on significantly reducing its imports from Iran, a source at the Koreas economy ministry said yesterday.
In contrast to Japan, South Korea, the worlds fifth-largest oil importer, increased its imports from Iran in 2011 by 20%. Its refiners have signed deals to import a little more crude again from Iran in 2012.
South Africas energy minister said last week he hoped to have a plan by the end of May for replacing Iran supplies, which currently make up a quarter of its crude imports.
But reflecting a problem for several countries, Turkeys energy minister, Taner Yildiz, told reporters yesterday the country could not stop buying Iran crude unless alternative oil sources were found.
The 10 nations from the European Union, which has already decided to stop importing Iranian oil from July, were Belgium, Britain, the Czech Republic, France, Germany, Greece, Italy, the Netherlands, Poland and Spain, the State Department said.
The decision means banks in these countries have been given a six-month reprieve from the threat of being cut off from the US financial system under new sanctions designed to pressure Iran over its nuclear programme.
The list did not include China and India, Irans top two crude oil importers, nor US allies South Korea and Turkey, which are among the top-10 consumers of Iranian oil.
Japan, China and India combined buy close to half of Irans crude exports of 2.6mn bpd, providing crucial foreign exchange for the Opec member.
But the US sanctions and an EU oil embargo have cut Iran out of financial networks, making it difficult to transfer funds to pay for trade and disrupting some oil shipments because of the difficulty of securing shipping insurance. Domestic prices in Iran have spiraled higher and the rial has slumped in value.
Japanese Finance Minister Jun Azumi welcomed the US decision, saying yesterday that Japan would continue to cut its imports of Iranian oil at a set rate in the future.
The decision takes account of Japans steps on Iranian oil, including its future response, he told reporters.
Indeed, the Japan government wants the nations crude buyers to cut Iran imports by 10% to 20% a year, Akihiko Tembo, the chairman of the Petroleum Association of Japan, said.
A US official held up Japans estimated 15%-22% cut in oil purchases from Iran in the second half of last year as an example for other nations.
Japan was a model, Carlos Pascual, State Department Special Envoy and Coordinator for International Energy Affairs, told lawmakers, noting the cuts were made even after the country suffered an earthquake that caused a civil nuclear disaster.
If Japan was able to do what it did ... that should be an example to others that they could potentially do more.
Still, Pascual declined to set a benchmark that countries could use to secure an exemption. The law says they must significantly reduce Iranian oil imports and continue to do so to win exemptions, he said.
Underlining US efforts to tighten the financial noose around Iran, a state department official said 12 other countries may eventually be subject to US sanctions unless they cut Iran crude purchases. He did not list them. South Korea will hold another round of talks soon with the US on significantly reducing its imports from Iran, a source at the Koreas economy ministry said yesterday.
In contrast to Japan, South Korea, the worlds fifth-largest oil importer, increased its imports from Iran in 2011 by 20%. Its refiners have signed deals to import a little more crude again from Iran in 2012.
South Africas energy minister said last week he hoped to have a plan by the end of May for replacing Iran supplies, which currently make up a quarter of its crude imports.
But reflecting a problem for several countries, Turkeys energy minister, Taner Yildiz, told reporters yesterday the country could not stop buying Iran crude unless alternative oil sources were found.
The 10 nations from the European Union, which has already decided to stop importing Iranian oil from July, were Belgium, Britain, the Czech Republic, France, Germany, Greece, Italy, the Netherlands, Poland and Spain, the State Department said.
You think sanctions means nuking someone?
