China, India and Japan plan cuts in Iranian oil imports

IRJ – 22 February - China, India and Japan are planning cuts of at least 10 per cent in Iranian crude imports, Reuters news agency has reported.

 

The report attributes the planned cuts to tightening US sanctions which are making it harder for top Asian buyers to keep doing business with Tehran.

Combined, the three countries buy about 45% of Iran’s crude exports. If implemented, the cuts would add to a European Union ban on Iran oil imports, which comes into effect on July 1.

The cuts are part of international efforts to restrict the flow of vital foreign exchange to Iran, which is under pressure over its nuclear programme.

According to Reuters, Japan is close to an agreement with Washington on the size of cuts needed to win waivers from the U.S. sanctions, two ministers said. The Yomiuri newspaper, citing unidentified sources, said the two sides would settle on an 11 per cent cut.

For its part, the Indian government is pushing its refineries to cut imports by at least 10 per cent, two sources informed Reuters. India has said it will not abide by U.S. unilateral sanctions, so its response could indicate the increasing uncertainty of doing business with Iran.

On the other hand, China's Unipec, the trading arms of Sinopec Corp, is likely to cut imports by 10 per cent to 20 per cent under 2012 supply contracts, a Chinese industry executive with direct knowledge of the deal said.

 

 

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