US, Japan close to agreement on Iran oil sanctions

Sri Lanka Source Tuesday 21st February, 2012

TOKYO - Japan Tuesday said it had come closer to the US on sanctions against Iran but denied any final agreement regarding the embargo even as a newspaper reported that Tokyo had proposed 11 per cent annual cut in its Iranian crude imports.

Foreign Minister Koichiro Gemba said Japan and the US had "deepened mutual understanding" but "we have not yet reached an agreement in principle" on the sanctions.

Gemba was commenting on remarks on a report by Yomiuri Shimbun newspaper Tuesday that the US has agreed in principle to Japan's proposals to cut Iranian crude imports by more than 11 per cent per year.

The newspaper, quoting unidentified sources, said Japan and the US reached the agreement during negotiations last week with a formal deal expected by the end of February.

Trade Minister Yukio Edano said at a separate news conference that Japanese leaders "are closely negotiating with the United States and are moving forward toward mutual understanding."

"But it is not the case that we have reached a conclusion," he said.

Iran accounted for 8.6 per cent or the fourth largest supplier of total crude oil imports by Japan in December last.

In US, officials said the talks on the issue were on. Reuters quoted a senior official in President Barack Obama's administration as saying "it would be premature to discuss any of them at this time."

US wants other nations, particularly Asian friends, to cut Iranian oil imports because Washington alleges that Tehran was using its fuel funds to develop nuclear weapons.

Iran has denied this saying its nuclear programme is for civilian usage only.