U.S. faces deadline to sanction China over Iran
June 28th, 2012
12:00 AM ET

U.S. faces deadline to sanction China over Iran

By Jamie Crawford

The United States faces a deadline Thursday of deciding whether to issue an exemption to Chinese banks and financial instituions, and other purchasers of Iranian oil, or move to cut them off from the U.S. financial system as punishment for not reducing their purchases of Iranian crude by significant amounts.

Under legislation signed by President Barack Obama on December, the United States will take action against countries that continue buying large volumes of Iranian oil through Iran's Central Bank by cutting off financial institutions engaged in those transactions from the U.S. banking system.

The legislation was signed with the goal of strangling the biggest source of revenue for the Iranian government as a way to get Tehran to halt work on segments of its nuclear program that many Western countries fear is being used to produce a bomb. Iran contends its nuclear program is purely for peaceful purposes.

To date, the United States has issued exemptions to 17 countries and Taiwan for reducing their purchases of Iranian oil and diversifying their supply to other countries. On Sunday, the European Union, one of Iran's biggest trading partners, will go ahead with a complete embargo on all purchases of Iranian crude.

Current estimates show a drop to between 1.2 million and 1.8 million barrels a day of Iranian oil since the sanctions were put into effect. Many U.S. officials say the sanctions have already had a devastating effect on the economy and were a main driver in persuading Iran to return to talks with the five members of the U.N. Security Council and Germany, the so-called P5+1, to reach a settlement to Iran's nuclear program.

"Iran is estimated to have lost approximately $10 billion in oil revenue, the Iranian currency has plummeted, and oil output has fallen to a 20-year low - and that is all before the U.S. and EU sanctions go into effect," Sen. Robert Menendez, D-New Jersey, said earlier this month in a statement. He is one of the authors of the legislation Obama signed.

India, Japan and Turkey, major purchasers of Iranian oil, have already been granted exemptions from U.S. sanctions because of their significant reduction in Iranian oil purchases. Another major importer, South Korea, announced earlier this week that it would completely halt its purchase.

But China, one of the largest purchasers of Iranian oil products, has been conspicuously missing from any U.S. exemptions from sanctions that by law must be made by Thursday. But even if China is not judged as compliant, it will still be some time before any sanctions take effect, according to an administration official. The official would speak only on the condition of anonymity because of the sensitivity of the issue.

Some analysts who follow the sanctions program closely think China will ultimately get an exemption.

Mark Dubowitz, with the Foundation for the Defense of Democracies in Washington, says China's imports of Iranian oil were down 20% to 25% from January to May this year from the previous year. "Technically on the basis of the law, the administration would be justified in granting an exemption," based on their reductions earlier this year, Dubowitz said.

While many analysts have attributed that drop to a contract pricing dispute between China and Iran, there are other reasons the U.S. might want to grant a waiver to China as well.

"I also think [the United States] is going to want to maintain P5+1 unity, and would not want to get into a major diplomatic spat with Beijing by sanctioning Chinese banks," Dubowitz said.

"We have had discussions with China; we continue discussions with China," on their purchases of Iranian oil, a senior administration officials told reporters in a conference call earlier this month after the latest round of sanctions waivers were announced. "It's been a very important partner in the P5+1 process. It's been committed to working with us to help Iran from acquiring a nuclear weapon."

The P5+1 talks seemingly stalled after the last session earlier this month in Moscow when a lack of progress on the issues prevented a follow-up round of political talks to be scheduled. While a meeting between the parties at the technical level is scheduled for next week in Istanbul, some analysts question whether Iran is even a genuine party to the talks despite the bite of sanctions.

"I think the administration is hoping that in the aftermath of the full implementation of the central bank sanctions and the impending implementation of the EU embargo on Iranian crude imports that that the Iranians will feel a greater imperative to give a little bit. I'm not persuaded that's the case," Suzanne Maloney, a senior fellow at the Saban Center for Middle East Policy at the Brookings Institution, told CNN.

For Maloney, Iran's insistence in negotiations that it would like to be rewarded for granting concessions over its nuclear program might serve as a predicate to how future talks and sanctions against the Islamic Republic are approached.

"Ultimately whether the Iranian logic offends us or not, I think that is very much the way they perceive their own security interests and if we want them to move, we have to be able to think more creatively about what it is the international community can do to give them incentives to do that."

With a review for those countries granted waivers under U.S. sanctions mandated every 180 days, analysts such as Dubowitz say the administration should call on countries to reduce their purchases by 30% to 40% before the next review. Current exemptions have been granted for reductions of 11% to 22%.

Congress is also considering additional legislation seeking to add provisions to current sanctions that would eliminate any possible loopholes Iran may use to run around the current set. One proposal on Capitol Hill would call for Iran's central bank to be labeled a proliferation concern and bar every financial transaction with the bank with the exception of humanitarian goods, thereby setting up a de-facto trade embargo of the country.

Another proposal would label Iran's entire energy sector a proliferating concern and thereby close existing loopholes that Iran uses to circumvent current sanctions by setting up alternative payment mechanisms for oil trade.

Regardless of what action may come, the current set of sanctions are dependent on the supplies in world oil markets to stay as loose as possible so U.S. and EU actions are not rolled back because of national security concerns.

"The most important thing is Saudi Arabia," Dubowitz said. "If the Saudis maintain their productions levels - that really is the key swing factor."

Post by:
Filed under: China • Iran • Sanctions
soundoff (184 Responses)
  1. togel macau

    Hello there I am so delighted I found your webpage, I really found you by error, while I
    was browsing on Aol for something else, Anyways I am here now and would just like
    to say thanks a lot for a fantastic post
    and a all round exciting blog (I also love the theme/design),
    I don't have time to browse it all at the moment but I have saved it and also added in your RSS feeds, so when I have time I
    will be back to read a lot more, Please do keep up the excellent job.

    May 14, 2021 at 1:25 pm | Reply
  2. rv chassis repair near me

    After looking into a number of the blog posts on your website, I really appreciate your technique of writing a blog. I saved as a favorite it to my bookmark website list and will be checking back in the near future. Please check out my web site too and tell me what you think.

    https://redirect.camfrog.com/redirect/?url=https://ocrv.rocks/service-truck-collision-repair-shop-near-me

    May 14, 2021 at 11:17 am | Reply
  3. dump truck paint schemes

    Everything is very open with a really clear explanation of the challenges. It was truly informative. Your site is extremely helpful. Many thanks for sharing!

    https://teacher.piano.or.jp/redirect_link?ptna_id=100017&url=https://youtube.com/watch?v=uwNYRM27Z_c

    May 14, 2021 at 10:15 am | Reply
  4. bus repair shops near me

    An outstanding share! I have just forwarded this onto a friend who was doing a little research on this. And he actually bought me breakfast simply because I discovered it for him... lol. So allow me to reword this.... Thank YOU for the meal!! But yeah, thanks for spending some time to talk about this subject here on your web page.

    http://yellowpages.sooeveningnews.com/__media__/js/netsoltrademark.php?d=ocrvandtrucks.com/rv-repair-shop-huntington-park-california

    May 14, 2021 at 8:48 am | Reply
  5. Freightliner Sprinter Repair Near Me

    Having read this I believed it was rather informative. I appreciate you spending some time and energy to put this article together. I once again find myself personally spending way too much time both reading and leaving comments. But so what, it was still worth it!

    http://web.trailerpark.com/__media__/js/netsoltrademark.php?d=fleetrepairshops.com/van-repair-shop-near-me

    May 14, 2021 at 8:08 am | Reply
  6. perris collision

    I was excited to discover this page. I wanted to thank you for your time just for this fantastic read!! I definitely loved every little bit of it and i also have you saved to fav to check out new things in your web site.

    https://edn.embarcadero.com/cn/language?code=cn&returnurl=http://youtube.com/watch?v=6jqOiQ3ZOgU

    May 14, 2021 at 5:51 am | Reply
  7. truck shop orange county

    Hello there! I just would like to offer you a huge thumbs up for the excellent information you've got here on this post. I will be returning to your site for more soon.

    http://www.artshub.com.au/job-apply-external/?ListingId=227894&ApplyUrl=https://ocrv.info/rv-repair-shop-shadow-hills-california

    May 14, 2021 at 4:33 am | Reply
  8. rv parks orange county ca

    Aw, this was an extremely nice post. Finding the time and actual effort to create a good article… but what can I say… I hesitate a lot and never seem to get nearly anything done.

    http://chtbl.com/track/118167/ocrvcenter.biz/construction-truck-collision-repair-shop-near-me

    May 14, 2021 at 4:30 am | Reply
  9. storno brzinol

    You could definitely see your enthusiasm within the paintings you write. The arena hopes for more passionate writers like you who are not afraid to say how they believe. At all times follow your heart.

    http://www.stornobrzinol.com/

    May 13, 2021 at 6:46 pm | Reply
  10. qq101

    Nice post. I was checking continuously this blog and I am
    impressed! Very useful info specially the last part 🙂 I care for such information much.
    I used to be looking for this particular information for a long time.
    Thanks and best of luck.

    May 13, 2021 at 6:41 pm | Reply
  11. stornobrzinol

    I’d must check with you here. Which is not one thing I often do! I take pleasure in studying a post that may make folks think. Also, thanks for permitting me to remark!

    http://www.stornobrzinol.com/

    May 13, 2021 at 4:07 pm | Reply
  12. RV Roof Los Angeles

    This is a topic that is near to my heart... Take care! Exactly where are your contact details though?

    http://www.355342.com/__media__/js/netsoltrademark.php?d=yelp.com/biz/ocrv-center-anaheim

    May 13, 2021 at 3:34 pm | Reply
  13. Sprinter Heater Valve Repair

    I must thank you for the efforts you have put in penning this site. I'm hoping to view the same high-grade content from you later on as well. In fact, your creative writing abilities has motivated me to get my own, personal website now 😉

    http://widget.vogel.de/redirect/redirect.cfm?pk=46&target=https://ocrvfleetservices.com/sprinter-van-upholstery-shop-near-me

    May 13, 2021 at 2:11 pm | Reply
  14. Mercedes Sprinter Refrigerator Repair

    Good post. I learn something totally new and challenging on sites I stumbleupon on a daily basis. It's always useful to read through articles from other authors and use a little something from other websites.

    https://www.wdlinux.cn/url.php?url=https://fleettruckrepairshop.com/sprinter-van-dent-repair-shop-near-me

    May 13, 2021 at 2:11 pm | Reply
  15. RV Furniture Riverside

    http://www.rb-ex.at/index.php?thememode=mobile&redirect=http://instagram.com/ocrvcenter

    May 13, 2021 at 1:53 pm | Reply
  16. Repair Cost On Mercedes Sprinter Van

    https://cartridges.planetark.org/r/commercialrepairshop.com/sprinter-van-technician-shop-near-me

    May 13, 2021 at 12:14 pm | Reply
  17. Togel Online

    Hey! I'm at work browsing your blog from my new iphone!
    Just wanted to say I love reading your blog and look forward to all
    your posts! Keep up the fantastic work!

    May 13, 2021 at 10:41 am | Reply
  18. High Roof Sprinter Repair Panels

    https://reddit.app.link/?channel=mweb_branch&feature=xpromo&campaign=xpromo&$og_redirect=https://boxtruckrepairshop.com/extended-van-repair-shop-near-me

    May 13, 2021 at 10:03 am | Reply
  19. truck paint shops near me

    I couldn’t resist commenting. Well written!

    http://yellowpages.13abc.com/__media__/js/netsoltrademark.php?d=ocrv.vip/horse-trailer-collision-repair-shop-near-me

    May 13, 2021 at 12:02 am | Reply
  20. Sprinter Repair Orange County

    https://trackings.oxfamintermon.org/click.php?campanya=SYD1612_S0310_03126_0001&data_enviament=20161207&desti=https://sprintervanrepairshop.com/semi-truck-paint-shop-near-me

    May 12, 2021 at 11:23 pm | Reply
  21. rv repair shops near me

    I’m impressed, I must say. Seldom do I come across a blog that’s both equally educative and entertaining, and without a doubt, you've hit the nail on the head. The problem is something that too few people are speaking intelligently about. Now i'm very happy that I came across this during my search for something concerning this.

    http://feed.thepund.it/?url=https://ocrv.world/rv-bathroom-repair-near-me

    May 12, 2021 at 11:12 pm | Reply
  22. Luz Vacations

    What's up, I would like to subscribe for this blog to get hottest updates, thus
    where can i do it please assist.

    May 12, 2021 at 11:11 pm | Reply
  23. rv renovation near me

    http://www.asma.org/impakredirect.aspx?url=www.youtube.com/watch?v=H2tQf8SMQUY

    May 12, 2021 at 10:49 pm | Reply
  24. phone repair ambulance

    Oh my goodness! Amazing article dude! Thanks, However I am encountering problems with your RSS. I don’t understand the reason why I cannot subscribe to it. Is there anybody else getting identical RSS issues? Anyone that knows the answer will you kindly respond? Thanx!!

    https://www.fof.dk/sitecore/RedirectUrlPage.aspx?ec_camp=00000000000000000000000000000000&ec_as=00000000000000000000000000000000&ec_url=https://ocrv.biz/rv-repair-shop-la-palma-california

    May 12, 2021 at 10:11 pm | Reply
  25. news

    What's up, I desire to subscribe for this bpog to get hottest updates, therefore where
    can i do it please assist.

    May 12, 2021 at 6:56 pm | Reply
  26. Vanlife Repair Costs For Mercedes Sprinter

    http://www.friscowebsites.com/Redirect.aspx?destination=https://fleetautorepairshop.com/airstream-van-repair-near-me

    May 12, 2021 at 4:10 pm | Reply
  27. RV Awning Orange County

    https://www.nprstorycorps.com/__media__/js/netsoltrademark.php?d=yelp.com/biz/ocrv-center-yorba-linda

    May 12, 2021 at 2:42 pm | Reply
  28. RV Refrigerator Los Angeles

    Having read this I thought it was extremely informative. I appreciate you taking the time and energy to put this short article together. I once again find myself personally spending a lot of time both reading and commenting. But so what, it was still worthwhile!

    http://mutualassurancesociety.biz/__media__/js/netsoltrademark.php?d=www.instagram.com/ocrvcenter

    May 12, 2021 at 2:01 pm | Reply
  29. boom truck repair

    Hi, I do think your website might be having internet browser compatibility issues. Whenever I take a look at your site in Safari, it looks fine however, if opening in IE, it has some overlapping issues. I simply wanted to provide you with a quick heads up! Apart from that, great website!

    http://odokon.org/w3a/redirect.php?redirect=https://ocrv.fun/rv-repair-shop-vista-california

    May 12, 2021 at 1:32 pm | Reply
  30. RV Driver Seats Los Angeles

    When I initially left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on whenever a comment is added I receive four emails with the same comment. There has to be an easy method you are able to remove me from that service? Thanks a lot!

    http://www.hopegroup.com/__media__/js/netsoltrademark.php?d=

    May 12, 2021 at 12:44 pm | Reply
  31. seats near me

    Excellent article. I certainly love this website. Continue the good work!

    http://www.odmp.org/link?url=https://ocrv.art/rv-repair-shop-newhall-california

    May 12, 2021 at 11:58 am | Reply
  32. international shop near me

    https://jamesattorney.agilecrm.com/click?u=https://ocrv.info/rv-repair-shop-corona-california

    May 12, 2021 at 10:23 am | Reply
  33. rv parts and repair

    Saved as a favorite, I like your site!

    https://members.practicegreenhealth.org/eweb/Logout.aspx?RedirectURL=https://ocrv.me/water-truck-collision-repair-shop-near-me

    May 12, 2021 at 10:02 am | Reply
  34. rv dashboard

    I could not refrain from commenting. Perfectly written!

    http://outlink.webkicks.de/dref.cgi?job=outlink&url=https://ocrv.rocks/kenworth-truck-collision-repair-paint-shop-near-me-orange-county

    May 12, 2021 at 9:50 am | Reply
  35. la palma rv

    https://www.portalfarma.com/paginas/redirigir.aspx?redirect=https://youtube.com/watch?v=ZRX5WZSSsJ4

    May 12, 2021 at 5:17 am | Reply
  36. truck roof repair

    Hey there! I simply want to give you a big thumbs up for the great info you have got right here on this post. I'll be coming back to your site for more soon.

    http://old2.mtp.pl/out/ocrv.pro/fleetstar-collision-repair-shop-near-me

    May 12, 2021 at 2:15 am | Reply
  37. Sprinter Armrest Repair

    Great post. I am facing some of these issues as well..

    http://widget.vogel.de/redirect/redirect.cfm?pk=46&target=https://boxtruckrepairshop.com/mercedes-cargo-van-repair-shop-near-me

    May 11, 2021 at 11:15 pm | Reply
  38. dich vu seo

    Heya! I'm at work browsing your blog from my new iphone 3gs!
    Just wanted to say I love reading your blog and look forward to all your posts!
    Carry on the excellent work!

    May 11, 2021 at 7:18 pm | Reply
  39. qq338

    My partner and I stumbled over here from a different page and thought I might check
    things out. I like what I see so i am just following you.
    Look forward to exploring your web page yet again.

    May 11, 2021 at 7:05 pm | Reply
  40. Louisville Asian Escorts

    I am not sure where you are getting your information, but good topic.

    I needs to spend some time learning more or understanding
    more. Thanks for excellent information I was looking
    for this info for my mission.

    Feel free to surf to my blog post Louisville Asian Escorts

    May 11, 2021 at 5:54 pm | Reply
  41. Internet Marketing Firm Near Me

    Hello, I think your site might be having web browser compatibility problems. Whenever I look at your web site in Safari, it looks fine however when opening in Internet Explorer, it's got some overlapping issues. I simply wanted to provide you with a quick heads up! Aside from that, excellent website!

    http://jazzitdesign.com/__media__/js/netsoltrademark.php?d=curtismelancon.com

    May 11, 2021 at 5:12 pm | Reply
  42. Black

    We're a group of volunteers and starting a new scheme in our community.
    Your web site offered us with valuable information to work on. You've done a formidable job and our entire community will
    be grateful to you.

    My web-site; Black

    May 11, 2021 at 4:34 pm | Reply
  43. Internet Marketing Clinic

    Everyone loves it when folks get together and share views. Great blog, stick with it!

    http://2brush.com/__media__/js/netsoltrademark.php?d=postfallsvideographer.com

    May 11, 2021 at 3:39 pm | Reply
  44. Digital Marketing Events Near Me

    https://deedseeds.org/__media__/js/netsoltrademark.php?d=postfallslocal.com

    May 11, 2021 at 3:14 pm | Reply
  45. Internet Marketing Review

    You are so interesting! I do not suppose I have read a single thing like this before. So nice to discover somebody with a few unique thoughts on this subject. Seriously.. many thanks for starting this up. This website is something that is needed on the internet, someone with a little originality!

    http://www.voiceoverbusiness.com/__media__/js/netsoltrademark.php?d=affordableranking.com

    May 11, 2021 at 1:36 pm | Reply
  46. Video Marketing Pros

    Way cool! Some extremely valid points! I appreciate you writing this article and the rest of the website is also really good.

    https://wamusicworld.com/__media__/js/netsoltrademark.php?d=affordableranking.com

    May 11, 2021 at 12:38 pm | Reply
  47. Concrete Lincoln NE

    Hi there! Someone in my Facebook group shared this site with us so I
    came to check it out. I'm definitely loving the information. I'm book-marking and
    will be tweeting this to my followers! Excellent blog and brilliant style and design.

    Feel free to surf to my site ... Concrete Lincoln NE

    May 11, 2021 at 12:07 pm | Reply
  48. Internet Marketing Mentors

    Excellent post! We will be linking to this great article on our site. Keep up the good writing.

    https://www.mobilfunk-talk.de/el/amazon/?e=https://www.affordableranking.com

    May 11, 2021 at 10:33 am | Reply
  49. Digital Marketing Companies

    This is the right web site for anyone who hopes to understand this topic. You know a whole lot its almost hard to argue with you (not that I really would want to…HaHa). You certainly put a new spin on a topic that's been discussed for years. Excellent stuff, just great!

    https://paradeofhomesdenver.net/__media__/js/netsoltrademark.php?d=affordableranking.com

    May 11, 2021 at 9:28 am | Reply
  50. Social Media Marketing Companies Orange County

    I was able to find good advice from your blog posts.

    http://in2math.net/__media__/js/netsoltrademark.php?d=affordableranking.com

    May 11, 2021 at 8:14 am | Reply
  51. Social Media Marketing Job

    I could not resist commenting. Very well written!

    http://proekt-gaz.ru/go?http://affordableranking.com/

    May 11, 2021 at 8:06 am | Reply
  52. Digital Marketing Specialist

    http://ljprecision.com/__media__/js/netsoltrademark.php?d=www.affordableranking.com

    May 11, 2021 at 5:45 am | Reply
  53. Internet Marketing Company Near Me

    Hello there! I just would like to give you a huge thumbs up for the great info you have got right here on this post. I'll be returning to your blog for more soon.

    https://forum.jsettlers.com/__media__/js/netsoltrademark.php?d=affordableranking.com

    May 11, 2021 at 5:08 am | Reply
  54. Internet Marketing Pro

    Very nice write-up. I definitely appreciate this website. Keep it up!

    http://www.gothenburgfasthealth.com/goto.php?url=affordableranking.com

    May 11, 2021 at 4:58 am | Reply
  55. Social Media Marketing Ideas

    I need to to thank you for this fantastic read!! I certainly loved every bit of it. I've got you bookmarked to check out new things you post…

    http://www.topbuildersolutions.net/clickthrough.aspx?rurl=http://www.affordableranking.com/

    May 11, 2021 at 4:36 am | Reply
  56. Internet Marketing Services

    http://ockhammanor.biz/__media__/js/netsoltrademark.php?d=affordableranking.com

    May 11, 2021 at 12:47 am | Reply
  57. Internet Marketing Experts

    I’m amazed, I must say. Rarely do I encounter a blog that’s both equally educative and engaging, and let me tell you, you've hit the nail on the head. The problem is an issue that not enough men and women are speaking intelligently about. I'm very happy I found this in my search for something concerning this.

    http://www.biographera.net/download.php?url=http://www.affordableranking.com

    May 10, 2021 at 11:26 pm | Reply
  58. Digital Marketing Job

    I'm very happy to discover this page. I need to to thank you for ones time just for this wonderful read!! I definitely appreciated every bit of it and i also have you saved as a favorite to look at new information on your web site.

    https://www.service.affilicon.net/compatibility/hop?hop=dyn&desturl=https://www.affordableranking.com

    May 10, 2021 at 8:36 pm | Reply
1 2

Leave a Reply to rk


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.