US exempts 10 EU nations, Japan from Iran oil sanctions
The
US granted exemption from Iran sanctions to 10 European countries and
Japan on Friday because all of them have significantly reduced or halted
oil imports from the Islamic Republic. Japan continues to import oil
from Iran but all European Union countries halted them a year ago.
American sanctions are designed to
pressure Iran to curb its nuclear programme, which Washington suspects
is aimed at producing weapons. Iran has repeatedly insisted it is only
for generating electricity and medical research.
The most ambitious US tactic has
involved pressuring countries around the world to cut commercial ties
with Iran or face a series of restrictions on what type of business they
can conduct in the US, the world’s largest market. But the Obama
administration has been granting exemptions to a number of mostly Asian
countries that rely on Iranian oil on condition that they significantly
reduce their imports over time.
The entire European Union has not
purchased Iranian oil since 1 July 2012, the US state department said in
a statement. Because of that reduction, the US said 10 EU countries had
qualified for six-month sanctions exemptions: Belgium, the Czech
Republic, France, Germany, Greece, Italy, Netherlands, Poland, Spain and
Britain.
The state department said a total
of 20 countries have continued to significantly reduce their crude oil
purchases from Iran. China remains Iran’s top trading partner and its
No. 1 client for oil exports, with Japan, India and South Korea among
other top purchasers.
Despite plummeting sales overseas,
Iran remains one of the world’s largest oil producers. Its exports
bring in tens of billions of dollars in revenue for the country’s
hard-line leaders, money the US is trying to cut off.
A senior US official said last
week that sanctions have reduced Iranian oil exports by 58% since late
2011. He also said the US has concluded that nearly half of Iran’s
monthly earnings from crude oil exports are accumulating in accounts
overseas because of sanctions that restrict Tehran’s access to the
money. But economists said Iran is also finding ways to work around
sanctions, for example by increasing exports of non-oil, non-sanctioned
goods.
The news of the European
exemptions came as successful legal challenges to European sanctions on
Iran mounted. An EU court said it would throw out penalties imposed on
eight Iranian banks and businesses for their alleged ties to Iran’s
nuclear programme because there wasn’t sufficient evidence to justify
the sanctions imposed by the bloc. The US was disappointed with the
ruling.
“The evidence linking these banks
to Iran’s illicit nuclear activities is clear and strong, and no
financial institution anywhere should allow these Iranian banks to
transact with them,” the treasury said in a statement.
In other developments, the
treasury said earlier Friday that it was expanding sanctions to target a
network allegedly helping the government evade measures aimed at
curbing oil exports. The US accused Iran of using front companies,
financial institutions and businessmen “willing to engage in deceptive
transactions to conceal the direct involvement” of the Tehran government
in global oil transactions.
The US says the new sanctions
target the network of Seyed Seyyedi, an Iranian businessman and director
of Sima General Trading, as well as a network of companies based in the
United Arab Emirates that Seyyedi allegedly controls. They also target
National Iranian Oil Company representatives in Europe. The US
previously sanctioned Sima General as part of a network of Iranian
government front companies allegedly involved in a sanctions evasion
scheme with a Greek businessman.
Source: AP
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