Lanka Monitors Iran Deal

By Easwaran Rutnam-  Sunday, December 01, 2013

The government has sought information from the US Embassy in Colombo on the deal signed between the US and five other world powers with Iran.

Petroleum Resources Minister Anura Priyadharshana Yapa said that his Ministry is monitoring the situation and a decision will be taken once all the required information is gathered on if Sri Lanka can look at importing more fuel from Iran once again.

“We are still not sure what sanctions will be lifted but our refineries are built to suite Iranian oil so if things go well we will consider the option of importing oil from Iran once again,” Minister Yapa told The Sunday Leader.

However the Minister noted that apart from the US sanctions imposed on Iran there are also sanctions imposed by the EU which Sri Lanka needs to take into consideration when deciding on Iranian oil.

The U.S. State Department on Friday extended a waiver from US sanctions to Sri Lanka for another six months for not purchasing crude oil from Iran.

US Secretary of State John Kerry said that as President Obama has made clear, the United States will continue to vigorously implement its existing sanctions on Iran as six world powers seek to negotiate a comprehensive deal with Iran that will resolve the international community’s concerns regarding Iran’s nuclear program.

The initial agreement reached recently after more than four days of negotiations between Iran and the United States, France, Russia, China, Britain and Germany, was designed to buy time for negotiations on a final settlement of the decade-old nuclear dispute.

The Sri Lankan government had last year decided to stop importing oil from Iran ahead of a US sanctions deadline.

Sri Lanka has depended almost entirely on Iran for its crude oil supplies, getting 93 percent from the country.

Sri Lanka’s Iran oil sanctions exemption extended

30 November 2013

US Secretary of State John Kerry has announced an extension on exemptions from sanctions on oil purchases from Iran.

“As President Obama has made clear, the United States will continue to vigorously implement our existing sanctions on Iran as the P5+1 seeks to negotiate a comprehensive deal with Iran that will resolve the international community’s concerns regarding Iran’s nuclear program,” he said in a statement.
"I am pleased to announce that, based on additional significant reductions in the volume of their purchases of Iranian crude oil, China, India, the Republic of Korea, Turkey, and Taiwan have again qualified for an exception to sanctions,
“Additionally, Malaysia, South Africa, Singapore, and Sri Lanka have also qualified again for the NDAA exception because they no longer purchase crude oil from Iran,
“The effectiveness of the international sanctions regime has proven essential in bringing Iran to the table to negotiate and agree to the Joint Action Plan that, for the first time in nearly a decade, halts the progress of the Iranian nuclear program and rolls it back in key areas.
“We will continue to aggressively enforce our sanctions over the next six months, as we work to determine whether there is a comprehensive solution that gives us confidence that the Iranian nuclear program is for exclusively peaceful purposes.”

Regarding Significant Reductions of Iranian Crude Oil Purchases

Remarks

John Kerry
Secretary of State

Washington, DC

November 29, 2013

As President Obama has made clear, the United States will continue to vigorously implement our existing sanctions on Iran as the P5+1 seeks to negotiate a comprehensive deal with Iran that will resolve the international community’s concerns regarding Iran’s nuclear program.

That is why I am pleased to announce that, based on additional significant reductions in the volume of their purchases of Iranian crude oil, China, India, the Republic of Korea, Turkey, and Taiwan have again qualified for an exception to sanctions outlined in Section 1245 of the National Defense Authorization Act (NDAA) for Fiscal Year 2012.

These additional reductions were determined based on an analysis of these economies’ purchasing activity over the previous six months.

Additionally, Malaysia, South Africa, Singapore, and Sri Lanka have also qualified again for the NDAA exception because they no longer purchase crude oil from Iran.

As a result, I will report to the Congress that exceptions to sanctions pursuant to Section 1245 of the NDAA for certain transactions will apply to the financial institutions based in these countries for a potentially renewable period of 180 days.

This is the fourth time that these nine economies have qualified for an NDAA exception as a result of their continued significant reductions in the volume of crude oil purchases from Iran or their end to such purchases.

The effectiveness of the international sanctions regime has proven essential in bringing Iran to the table to negotiate and agree to the Joint Action Plan that, for the first time in nearly a decade, halts the progress of the Iranian nuclear program and rolls it back in key areas.

As part of the Joint Action Plan agreed to by the P5+1 and Iran, we will pause for six months our efforts to further reduce Iran's crude oil sales. However, the Joint Action Plan does not offer relief from sanctions with respect to any increases in Iranian crude oil purchases by existing customers or any purchases by new customers.

We will continue to aggressively enforce our sanctions over the next six months, as we work to determine whether there is a comprehensive solution that gives us confidence that the Iranian nuclear program is for exclusively peaceful purposes.