Lloyd’s List: US Sanctions Leave Room for Manoeuvre

“Washington has been lobbying for international sanctions against Iran for years, and its efforts came to fruition last month. After a visit from US Treasury Secretary Timothy Geithner, Japan got on board and promised to reduce its Iranian crude imports. The European Union also agreed to an embargo from July, while granting its southern members the right to honour their existing contracts. However, the effect of US action may not be as immediate or profound as first suggested. New US sanctions, signed into law late last year, target financial institutions that deal with Iran’s central bank. However, the new Bill leaves quite a few exemptions for Iranian crude buyers. . . . Already, an important voice in the shipping community, New York-based Poten & Partners, has voiced its dissatisfaction. ‘The impracticality of garnering international support aside, the tenets on which second tier sanctions will be implemented remain flawed,’ P&P said.”