[190114.EN.SEA] US and EU Ease Iran Trade Sanctions, But Trade Impact To Be Gradual

THE EU and the US eased sanctions against Iran's petrochemical exports this week with the Americans issuing the text of a background briefing on the Implementation Plan of the P5+1 and Iran's First Step Nuclear Agreement.

Meanwhile, EU governments will implement sanctions relief for Iran covered by a landmark nuclear deal, lifting a ban on insuring its oil, reported London's Tanker Operator.

The US State Department also issued a notice stating that each of the following importing nations of Iranian oil is qualified for an 180-day exemption: India, Malaysia, China, South Korea, Singapore, South Africa, Sri Lanka, Taiwan and Turkey.

Under the November 24 accord, the EU will suspend for six months a ban on insuring and transporting Iranian oil, as well as a trade ban affecting the country's petrochemicals, gold and other precious metals.

Reuters reports that the International Group of P&I Clubs that insures 95 per cent of the world's tanker fleet said it welcomed the move, but said the impact would be gradual.

"We see it as a move in the right direction towards ensuring that shipowners that are carrying these oil cargoes can have access to proper insurance and liability insurance cover," said group executive officer Andrew Bardot.

But he said it would take time before insurance providers will be able provide cover. "It will be a limited and gradual approach," said Mr Bardot because a number of Iranian companies, including Tehran's top oil tanker group NITC, are under sanctions.

Source : HKSG.