Wednesday, December 5, 2012

U.S. to Decide Sanctions Exceptions for Buyers of Iran Oil

The U.S. State Department is expected to decide by 8 December on extending the six-month exceptions to the sanctions given to India, Japan, South Korea, Turkey and other buyers of Iranian crude. The deadline for the decision for China and Singapore comes later in the month. Under the current U.S. laws, banks in countries that buy oil from Iran can be cut off from the U.S. financial system unless the purchases are reduced. 

The U.S. grants 6-month exemptions to the countries that have significantly reduced their Iran crude imports in a given period. The “significant” level for reduction is believed to be around 18 percent.
Turkey’s oil minister said today that his country has not received any new request from the U.S. to reduce its level of crude purchases from Iran. But the country’s purchasing seems to be falling. Turkish trade data showed crude imports from Iran fell by more than 30 percent in October. (Reuters, 5 December)

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