EU Reaches Preliminary Agreement on Iran Oil Ban
European Union governments have reached a preliminary agreement on an oil embargo against Iran but are debating when the measure should come into force, EU diplomats said Wednesday, as French Foreign Minister Alain Juppe said the decision could be taken at an EU foreign ministers' meeting on January 30 in Lisbon.
"There is an agreement in principle to forge ahead" with an oil embargo, a diplomat told Agence France Presse, but added that "there is still a lot of work" to do on its implementation ahead of the January 30 meeting.
Meanwhile, Juppe said: "It's at this occasion I hope that we can adopt this embargo on Iranian oil exports. We are working on this and things are on track."
The EU had been divided over whether to impose an Iranian oil ban, but a breakthrough was reached late December after Greece, Spain and other nations that import Iran's crude lifted their objections, another diplomat said.
EU governments are now negotiating when the embargo should affect existing contracts between Iran and European companies, the diplomats said.
"That's the bone of contention, in terms of timing," one of the diplomats said.
Another issue to resolve is finding alternative sources of oil for countries that rely on Iranian crude.
Spain represents 14.6 percent of Iranian oil imports to Europe, Greece 14.0 and Italy 13.1 percent.
Iranian leaders and military officials have warned that such an embargo could push them to close the strategic Strait of Hormuz at the entrance to the Gulf, through which 20 percent of the world's oil flows.
Iran has just finished 10 days of naval exercises near Hormuz, meant to show it was capable of controlling the channel and closing it if necessary.
The exercises climaxed on Monday with the test-firing of three types of anti-warship missile.
The United States and other Western nations have imposed sanctions over Tehran's controversial nuclear program, which they believe is being used to develop atomic weapons.
Iran has repeatedly denied that allegation, saying the program is purely for energy and medical uses.
Source: Agence France Presse
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