US Exempts Japan, 10 EU Countries from Iran Sanctions

The United States decided to exempt Japan and 10 European Union nations from Iran sanctions praising them for reducing dependency on the Islamic republic’s oil.


Ordered by Congress in December, the sanctions aim to punish countries that continue to buy oil from Iran.


However, China, India and South Korea, who are considered the major buyers of Iranian oil, were not exempt.


China, the biggest energy user in the world, and India have so far refused to join the Western actions.


Japan on Wednesday said China and India should reverse course and cut their Iranian oil imports as part of international efforts against Tehran’s nuclear program, according to AFP.


Foreign Minister Koichiro Gemba's comments come on the day resource-poor Japan said it will continue to cut its imports of crude from Tehran "considerably"."I think we have to communicate and exchange opinions well with China and India, so that sanctions (on Iran) will work more effectively," Gemba told reporters in Tokyo.


Source: Agencies
21-03-2012 - 14:06 Last updated 21-03-2012 - 14:06

"Depending on how you look at the data ..."

"... The State Department announced on Tuesday that it would exempt 10 European countries and Japan from penalties for doing business with Iran's central bank, because those countries are making significant progress toward weaning themselves off of Iranian oil."I am pleased to announce that an initial group of eleven countries has significantly reduced their volume of crude oil purchases from Iran -- Belgium, the Czech Republic, France, Germany, Greece, Italy, Japan, the Netherlands, Poland, Spain, and the United Kingdom. As a result, I will report to the Congress that sanctions pursuant to Section 1245 of the National Defense Authorization Act for 2012 (NDAA) will not apply to the financial institutions based in these countries, for a renewable period of 180 days," Secretary of State Hillary Clinton said in a Tuesday statement. "The actions taken by these countries were not easy. They had to rethink their energy needs at a critical time for the world economy and quickly begin to find alternatives to Iranian oil, which many had been reliant on for their energy needs."...

A senior State Department official said Tuesday that there are 12 countries left who import Iranian oil and could be sanctioned but didn't get exemptions today. But the official said that if those countries are going to be sanctioned, it won't be for a while....

The main countries that the United States might be forced to sanction at that time include China, Turkey, India, and South Korea, none of which received exemptions today. The State Department official admitted that the conditions for receiving an exemption are vague.

"On the case of the other countries, the legislation specifies ‘significantly reduce.' It doesn't define what ‘significantly reduce' is," the official said.

The official said that Japan represents a model for how other countries could act to avoid sanctions. But under questioning, the official refused to say exactly how much Japan has committed to reducing its dependence on Iranian oil, calling that "commercially protected information." He said Japan reduced its intake of Iranian oil between about 15 to 22 percent over the last half of 2011, depending on how you look at the data.

One senior Senate aide called into question the State Department's decision to issue Japan an exemption. The aide pointed out that the law requires countries to reduce their intake of Iranian oil in 2012, not 2011, and it's not clear if Japan is going to continue that trend ahead of the June 28 deadline.

"The bottom line is that if Japan has in fact committed to reducing their purchases of Iranian oil by 15 to 22 percent in 2012, this exemption is fully warranted. But if this is just a get out of jail free card issued on the basis of past performance alone, this would not be a faithful application of the law," the aide said."

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