US expects buyers of Iran's crude to deepen cuts

Comments 0
US expects countries that buy oil from Iran to further reduce their purchases if they want to avoid US sanctions. (Reuters) US expects countries that buy oil from Iran to further reduce their purchases if they want to avoid US sanctions. (Reuters)
SummaryUS expects countries that buy oil from Iran to further reduce their purchases if they want to avoid US sanctions.

The United States expects countries that buy oil from Iran to further reduce their purchases if they want to avoid U.S. sanctions, a State Department source said on Wednesday.

"The law requires additional cuts so we expect buyers to make additional cuts," a source at the State Department said about the U.S. sanctions law signed a year ago by President Barack Obama.

Under that law, banks in countries that buy oil from Iran can be cut off from the U.S. financial system unless the purchases are reduced.

China, India, South Korea and other countries got six-month "exceptions" to the sanctions in June for reducing oil shipments from Iran. The law says the cuts have to be "significant" but does not dictate how deep they must be.

The sanctions are designed to make it harder for Iran to fund its nuclear program, which Washington suspects is enriching uranium to levels that could be used in weapons, a charge Iran denies.

The architects of the sanctions legislation, Democratic Senator Robert Menendez and Republican Senator Mark Kirk, have urged the White House to require countries to reduce purchases by about 18 percent before getting the next round of waivers.

The 18 percent level surfaced in March when the State Department exempted Japan from sanctions, estimating that it had cut purchases by 15 to 22 percent.

Carlos Pascual, the State Department's top energy diplomat, and other U.S. Officials have been having conversations with Iran's top oil buyers as well as oil producers to see how the buyers can tap alternative sources of oil.

DECISION BY DEC 8

The State Department is expected to decide by Dec. 8 whether it will extend the six- month exceptions to the sanctions given to India, South Korea and other buyers of Iranian crude. The deadline for the decision for China and Singapore comes later in the month.

A State Department fact sheet about the sanctions law says the exceptions "can be renewed if the country continues to significantly reduce its volume of crude oil purchases from Iran in each subsequent 180-day period," implying cuts should be deepened every

Single Page Format
Ads by Google

More from Business

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...