Israel Matzav

EU to stop purchasing Iranian oil... eventually

The EU is Iran's second largest customer after China. European Union governments have reached a preliminary agreement to ban imports of Iranian crude to the EU but have yet to decide when such an embargo would be put in place, EU diplomats said on Wednesday.

The agreement, news of which sent crude oil prices higher, followed talks in the last days of December between EU envoys, diplomats said. Objections to the idea, notably from Greece, were dropped during the talks, they said.

"A lot of progress has been made," one EU diplomat said, speaking on condition of anonymity. "The principle of an oil embargo is agreed. It is not being debated anymore."

...

The United States welcomed the EU's decision, saying it was a move that would "tighten the economic noose on Tehran."

US State Department spokeswoman Victoria Nuland called the EU moves "the kinds of steps that we would like to see not just from our close allies and partners in places like Europe but from countries around the world. We do believe that this is consistent with tightening the noose on Iran economically," she said.

Following the EU's decision, the US further urged major importers of Iranian oil to "significantly" cut their purchases. The Obama administration hopes that by coordinating a strategic international response, the move will not destabilize global oil markets.

Diplomats said there was still a debate among European capitals over whether to enforce a crude ban immediately after it is agreed or to wait a few months. Some EU member states are concerned about the economic impact of an embargo at a time when Europe is struggling with massive debt problems.

Labels: European Union, Iran sanctions regime, oil boycott

posted by Carl in Jerusalem @ 2:27 AM