Russia, Germany slam United States sanctions on Iran

  • Russia, Germany slam United States sanctions on Iran

Russia, Germany slam United States sanctions on Iran

Washington had been pushing governments to cut imports of Iranian oil to zero.

As the US sanctions snapped back into place, Washington issued what Pompeo called "temporary" exemptions for eight countries (China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey). Big power disunity and European Union moves to circumvent Trump's sanctions regime have given Tehran a psychological boost - but not dissuaded foreign businesses ranging from oil majors to trading houses and shipping concerns from pulling out of Iran for fear of incurring new U.S. penalties.

Washington and the recipients of the waivers have not disclosed how much oil they are allowed to import, or under what conditions deals can still be made. It is reported that the USA is demanding that India restrict its yearly purchase to 15 million tonnes a year which would amount to only 300,000 barrels a day.

JP Morgan said "the lack or difficulty in acquiring shipping insurance will help in reducing exports quickly as they did during last worldwide sanctions".

Speaking on background Tuesday, a U.S. State Department spokesperson said that Secretary Mike Pompeo had approved carving an exception from sanctions for Iran's Chabahar port. Plans to link the port to the Iranian rail system, which connects to Afghanistan and on to Central Asia, featured in the U.S. State Department's decision.

That would be about half the daily average China has been importing from Iran since January 2016, trade data showed. But the broadly united front of world powers that enforced sanctions on Iran previously, pushing Iran into nuclear restraint, has unraveled since Trump took office and clashed with allies over everything from trade to collective security.

The port in the Sistan-Balochistan province in the energy-rich nation's southern coast is easily accessible from India's western coast and is increasingly seen as a counter to Pakistan's Gwadar Port, which is being developed with Chinese investment and is located at distance of around 80 kms from Chabahar.

TransCanada Corp.'s long-troubled Keystone XL oil pipeline project hit another roadblock as a U.S. District Court in Montana ruled it must wait for a further environmental review.

During the 2+2 ministerial level talks in September, apparently an understanding was arrived at, whereby India would take steps to reduce oil imports from Iran substantially. "Even without the exemptions, we will sell our oil". The U.S. crude CLc1 rose 58 cents to $62.79.

The sanctions aim to isolate Iran by choking off its main source of revenue - oil exports - and they are enforced through the imposition of penalties on companies that continue to do business with Iran.

The won-denominated payments will go into escrow accounts handled by the Industrial Bank of Korea (IBK) and Woori Bank.

Taiwan is only an occasional importer of Iranian oil, and no details regarding its waivers have been disclosed.

Italy and Greece have completely suspended purchases in recent weeks.