Brussels, 28/06/2012 (Agence Europe) - The European Union's oil sanctions against Iran, i.e. the ban on EU imports of Iranian oil and insurance or reinsurance contracts covered by European companies in relation to oil transport, will take effect with “no exceptions” as of Sunday 1 July, despite the last minute requests for exemptions by countries highly dependent on that oil and insurance, a high level insurance official announced on Wednesday 27 June, without naming the countries in question. “We understand the impact on partners, including strategic partners, but it was not possible to make exceptions”, the official said, as European insurance firms represent 85% of reinsurance for maritime oil transport. “We do not believe it would be appropriate to soften sanctions”, he added, as, in his view, extending exemptions would result in the whole package of measures being brought into question.
The same EU official also acknowledged that such measures have an enormous impact on EU member states and that this has called for considerable adjustments being made, especially for Spain, Italy and Greece, which are the main European importers of Iranian crude oil. It has not been easy for the European countries concerned to find alternative sources, the official said, all the more as Greece had negotiated extremely favourable conditions. However, he went on, since then Athens has found alternatives albeit under considerably less favourable terms. He explained that Greece has not received a specific credit line for offsetting this change in circumstance. The official said there has been a cost, but that that cost has been successfully managed by member states.
The European official pointed out that the effectiveness of measures taken will be analysed in coming weeks and months as they do not yet have figures available. He also said that entry into force of the sanctions “is not the end of the matter”, recalling that sanctions are only part of a dual approach combining sanctions and dialogue with Iran over its nuclear programme. Every sanction, he explained, may be revised at any moment, saying that as there is no fixed period that could be in six months to a year.
The EU makes up 20% of Iran's total oil exports and exports make up 50% of the regime's income. Besides the EU, India, Japan and South Korea (which have also reduced their imports of Iranian oil) and China are major consumers of Iranian oil. (CG/transl.jl)