Obama to closely monitor reduced oil purchases from Iran
“I will closely monitor this situation to assure that the market can continue to accommodate a reduction in purchases of petroleum and petroleum products from Iran,” said the US President in his certification.
However, the certification means that 23 countries including Pakistan, India and China may face sanctions in three months time, if they do not reduce their crude oil purchases from Iran.
A senior administration official told reporters that the US continues to talk to countries like South Korea, India and China to reduce their reliance on Iranian oil. The official added that the United States was “fully prepared” to go forward with these sanctions.
Earlier this month, a State Department official had explained these as being “against any transactions with the Central Bank of Iran by any financial institution, whether it’s private or public, related to the purchase of petroleum or petroleum products for Iran.”
According to Section 1245 of the National Defense Authorisation Act 2012, the US President had to certify by March 30, 2012, that despite price and supply conditions, countries that could switch from buying crude oil from Iran to other countries but have not done so would face sanctions.
If Pakistan and other countries do not reduce their crude oil purchases from Iran, sanctions against them may go into effect on June 28 of this year.
Earlier this month, US Secretary of State Hillary Clinton had certified that 11 countries that are among the top importers of crude oil from Iran had significantly reduced their purchases, and hence would not face sanctions for a renewable period of 180 days.
While the State Department had not divulged the names of the 12 countries that could face sanctions, Reuters had at the time reported that these included Pakistan, India, China, Indonesia, Malaysia, Philippines, Singapore, South Africa, South Korea, Sri Lanka, Taiwan and Turkey.
COMMENTS (9)
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China has already significantly reduced it's oil imports by China - but doesn't to keep this "low key" and not appear to be kowtowing to America. Not sure about India but the USA has the ability to remind India that it's recent economic rise is due in large part to the export of American jobs which Obama can reverse if necessary.
Sanctions hurt ordinary people more than the targeted regime. In the international community it's not always easy to rally every country behind one common cause. A nation might be seen as a pariah state by many and still has a few allies or a friends in the community.
In eighties and ninties america imposed sunctions on india and pakistan but they didnot worked out .
@Ali:
lol...
Imagine how funny would it be if USA imposes sanctions on China LOL
"A senior administration official told reporters that the US continues to talk to countries like South Korea, India and China to reduce their reliance on Iranian oil"
Why are they not talking to Pak? Afterall Pak is the non-NATO ally of US, right?
India is not getting any $ from US as aid. It is other way around. It was Obama went to India for more defense order.
I think these three countries should increase their purchases of oil from Iran and call the US's bluff.