EU seeks to delay Iran oil sanctions

A European Union (EU) official says the bloc will probably postpone an embargo on the imports of Iranian oil, stressing that the sanctions could batter the already reeling EU economies.

An EU oil embargo on the imports of Iranian crude oil will likely be delayed for six months, the EU official, who spoke on condition of anonymity, told Bloomberg on Thursday.

The delay will reportedly allow countries such as Greece, Italy and Spain to find alternative supply sources.

Phasing in the European oil embargo would ease the worries of Italy, Greece and Spain, which accounted for 68.5 percent of EU imports from Iran in 2010, according to European Commission data.

Meanwhile, Nigel Kushner, a London-based international- trade lawyer specializing in Iran sanctions, said the UK, France and Germany are said to have pushed for a three-month delay on oil embargo.

The EU foreign ministers are expected to hold a meeting later this month on January 23 to discuss the proposed embargo on Iran’s oil exports.

EU members have so far failed to reach a final agreement on such details as the exact timing of the sanctions and their diplomats say it may take months before sanctions actually enter into force given the critical economic conditions facing European countries.

EU countries buy about 500,000 barrels of Iran’s oil per day, making the union one of the big markets for Iranian crude.

European measures against Iran’s oil industry will complement US sanctions announced on New Year’s Eve that aim to make it impossible for most refineries to buy Iranian crude.

On Saturday, December 31, 2011, US President Barack Obama signed into law fresh economic sanctions against Iran’s Central Bank requiring foreign financial firms to make a choice between doing business with Iran’s Central Bank and oil sector or with the US financial sector.

US sanctions, as well as unilateral embargoes imposed on Iran’s energy and financial sectors by Britain and Canada came after the International Atomic Energy Agency issued a report on Iranian nuclear program early November, accusing Tehran of seeking to weaponize its nuclear technology.

Tehran argues that as a signatory to the nuclear Non-Proliferation Treaty and a member of the IAEA, it has the right to develop and acquire nuclear technology for peaceful purposes.