SEOUL: South Korea has pledged to the United States that it will cut imports of Iranian crude by 15 percent in the next six months to secure its next waiver to US sanctions targeting Iran’s nuclear programme, two sources said.
US and European measures aimed at curbing Iran’s oil shipments and depriving Tehran of its main source of funds drove crude exports to the lowest in decades in May. The curbs have cost Iran billions of dollars in lost revenue and Washington is now seeking to cut Iran’s exports further via tighter sanctions.
Earlier this month, Washington renewed a six-month exemption on sanctions for China, India, South Korea and six other economies in exchange for their agreeing to reduce purchases of oil from Iran. The exemptions will next come up for review in November, and any country failing to achieve a waiver is liable for sanctions that exclude its banks from the US financial system.
South Korea’s government has instructed refiners to make the import cuts, the two sources familiar with the plan said, after meetings between US and South Korean officials.
“The refiners have been unofficially told (by the government) to reduce imports in the next six months by 15 percent compared to the previous six months,” said one of the sources.
The second source confirmed the plan. Both declined to be identified because they are not authorised to speak to media.
Reuters
