The Obama administration is sending a message to major buyers of Iranian oil – in particular China, India and South Korea – that they can avoid new U.S. sanctions by curtailing their imports of Iranian crude by the end of June, several U.S. officials said, according to Bloomberg.
Secretary of State Hillary Clinton announced March 20 that an “initial group” of countries – Japan and 10 European Union nations – have “significantly reduced” their Iranian oil purchases and thus qualified for an exemption from sanctions for a renewable period of 180 days under the law.
The U.S. didn’t grant waivers to China , the leading importer of Iranian crude in the first half of last year, or to India and South Korea, which were the third- and fourth-largest buyers, according to the U.S. Department of Energy.
Clinton praised the EU and Japan, which the Energy Department lists as the No. 2 importer of Iranian oil in the first half of last year, for taking actions that “were not easy” to cut back Iranian oil imports. “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,” she said in a statement.
Under a law enacted December 31, countries have until June 28 to demonstrate they have “significantly reduced” the volume of their Iranian crude purchases – or their banks that settle oil trades with Iran may be cut off from the U.S. financial system.
