Brussels, 23/01/2012 (Agence Europe) - EU foreign ministers decided on Monday 23 January to impose a phased embargo on Iranian oil and oil products in view of Tehran's nuclear programme. The measures agreed relate to the import, purchase and transport of crude oil and oil products and to the banking and insurance sector activities related to the oil industry. They provide for an immediate ban on any new contracts and a transition phase, until 1 July 2012, for cancelling existing contracts. A review of the oil and oil derivatives measures will be carried out before 1 May, probably at the Foreign Affairs Council on 23 April, according to a European source. “Any changes can only be made by unanimous decision”, this diplomat stated.
The Council also banned the import into the EU of Iranian petrochemical products and the export of equipment and technology required in this sector. Investing in Iranian petrochemical companies or joint ventures with them is also outlawed.
Tight discussions
Discussion continued up until the very last moment to obtain the agreement of Greece, which is heavily dependent on Iranian oil. According to a diplomat, Athens received “political assurance” that it would be assisted. Spanish Foreign Minister José Manuel Garcia Margallo revealed that his country, another large importer of Iranian oil, was making a “very great sacrifice”, indicating, however, that the main companies concerned had assured him that they had “found alternatives”. Oil producing countries will be expected to take up the slack, but a diplomat revealed that hitherto no contracts have been signed.
Financial penalties
The Council also decided to impose penalties on the Iranian central bank, freezing its assets within the EU while ensuring that legitimate trade can continue “under strict conditions”. The trade in gold, precious metals and diamonds with Iranian public authorities and the central bank has been banned, as has the delivery of Iranian-denominated banknotes and coinage to the central bank. Three further persons have been hit by visa bans and have had their assets frozen, and eight other entities, including financial and transport, have had their assets frozen. All these measures will be published in the Official Journal of 24 January 2012. UK minister William Hague hailed this “unprecedented sanctions package”. “The possibility of an Iran with nuclear weapons cannot be contemplated”, said his German counterpart Guido Westerwelle, adding: “That is why it is important that the EU takes decisions that dry up funding sources for the Iranian nuclear programme”.
The purpose of the sanctions is to make Iran take seriously the request to return to the negotiating table, said High Representative Catherine Ashton. She restated her willingness to work to find a “diplomatic solution” as part of the dual-track approach. “Sanctions alone are not the answer but are a part of the instruments” the EU has at its disposal, said Carl Bildt of Sweden, stressing the importance of diplomatic discussions. (CG/transl.rt)