Japan seeks delay to adjust to Europe's Iran sanctions
News On Japan via Wall Street Journal -- Jun 14
Japan, looking to secure a steady energy supply, is pressing the European Union to loosen pending sanctions that would prohibit European firms from insuring its imports of Iranian oil, according to people familiar with the effort.
After significant reductions of purchases, Japan still gets about 3% of its crude from Iran, and 90% of such tanker voyages are reinsured by companies based in the EU.
Those insurance contracts come to a halt on July 1, when EU sanctions go into effect prohibiting EU-based companies from insuring or reinsuring ships carrying Iranian oil. The sanctions also include a ban on imports of Iranian oil to Europe.
Though the Japanese government has introduced legislation that would allow it to cover tankers carrying Iranian crude in the case of an accident, Japanese officials said such a law probably wouldn't be passed in time to come into effect by July 1.
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