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U.S. May Sanction India Over Level of Iran-Oil Imports
By Indira A.R. Lakshmanan and Pratish Narayanan - Mar 15, 2012
U.S. May Sanction India Over Level of Iran-Oil Imports - BloombergIndia has failed to reduce its purchases of Iranian oil, and if it doesn't do so, President Barack Obama may be forced to impose sanctions on one of Asia's most important nations, Obama administration officials said yesterday.A decision to levy penalties under a new U.S. law restricting payments for Iranian oil could come as early as June 28, according to several U.S. officials who spoke on condition of anonymity because of the sensitivity of the issue.
The U.S. law, which targets oil payments made through Iran's central bank, applies to any country that doesn't make a "significant" reduction in its Iranian crude oil purchases during the first half of this year. If India fails to cut Iranian imports sufficiently, Obama may be compelled to bar access to the U.S. banking system for any Indian bank processing oil payments through Iran's central bank, the U.S. officials said.
For their part, Japan and South Korea are seeking exemptions from the new U.S. sanctions. If both nations can demonstrate a significant reduction in their purchases by the end of June, their banks would escape penalties, according to two U.S. officials involved in the talks.Japan is seeking to reduce its crude purchases from Iran by at least 11 percent, according to a Japanese government official interviewed Feb. 21. The three largest Japanese buyers of Iranian crude are Showa Shell Sekiyu KK (5002), JX Nippon Oil & Energy Corp. and Cosmo Oil Co. (5007)The South Korean government has said it will make a decision on cutting Iranian crude imports by the end of June. South Korean officials denied reports saying they had already proposed cutting imports by 15 percent to 20 percent.The White House doesn't want to punish Japan, South Korea or India, critical U.S. partners in trade and security and important regional counterweights to the rise of China, U.S. officials said. Still, the president has limited leeway to grant exemptions under the law, and so far, India hasn't demonstrated reductions, they said.
By Indira A.R. Lakshmanan and Pratish Narayanan - Mar 15, 2012