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Iran cuts oil exports cut to Britain, France

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Mon, 20 Feb 2012 5:35a.m.

An Iranian official whispers to Iranian Oil Minister Rostam Qassemi (L) before a press conference in Tehran (AAP)

An Iranian official whispers to Iranian Oil Minister Rostam Qassemi (L) before a press conference in Tehran (AAP)

By Ali Akbar Dareini

Iran has halted oil shipments to Britain and France, according to the Oil Ministry. It is an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports.

The EU imposed tough sanctions against Iran last month, which included a freeze of the country's central bank assets and an oil embargo set to begin in July. Iran's Oil Minister Rostam Qassemi had warned earlier this month that Tehran could cut off oil exports to "hostile" European nations. The 27-nation EU accounts for about 18 percent of Iran's oil exports.

The EU sanctions, along with other punitive measures imposed by the US, are part of Western efforts to derail Iran's disputed nuclear program, which the West fears is aimed at developing atomic weapons. Iran denies the charges, and says its program is for peaceful purposes.

The spokesman for Iran's Oil Ministry, Ali Reza Nikzad-Rahbar, said on the ministry's website Sunday that "crude oil exports to British and French companies have been halted".

"We have our own customers and have no problem to sell and export our crude oil to new customers," he said.

Britain's Foreign Office declined comment, and there was no immediate response from French officials.

The semi-official Mehr news agency said exports were suspended to the two countries Sunday. It also said the National Iranian Oil Company has sent letters to some European refineries with an ultimatum to either sign long-term contracts of two to five years or be cut off.

Mehr did not specify which countries were sent the ultimatum, but Spain, Italy and Greece are among Europe's biggest buyers of Iranian oil.

Iran's targeting of Britain and France appeared to be a political decision to punish the two countries for supporting tougher sanctions against Iran over its nuclear program.

Sunday's announcement follows a flurry of contradictory signals by Iran about backlash against the EU for imposing a boycott on Iranian oil.

Last week, state media said Iran was planning to cut off oil exports to six EU nations, including France, but later reports said the nations were only told that Iran has no problem finding replacement customers for the European shipments.

The EU sanctions, imposed last month, were part of Western efforts to target Iran's critical oil sector in attempts to rein in Tehran's nuclear program.

Also on Sunday, the secretary general of Iran's central bank said a decision by SWIFT, an international banking clearinghouse used by nearly every country and major corporation in the world, to shut Iran out from its respected network will not harm the country.

"The country will not face any problems as a result of the SWIFT measures," Mahmoud Ahmadi was quoted as saying by the official IRNA news agency. He added that Iran has been "pursuing alternative solutions" since Western nations imposed sanctions on Tehran. He did not elaborate.

SWIFT said in a statement on its web site Friday that it will comply with expected instructions from the EU to cut off Iranian banks. SWIFT has previously brushed off international efforts to use its network to target countries or companies, telling enforcers that it does not judge the merits of the transactions passing through the portal.

AP

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Comments

21 Feb 2012 09:23a.m.

Gary wrote:

Interesting how USA are now manipulating EU to do there dirty work for them. They just put there military might in the water to try and instigate a war. You just get so sick and tired of their B/S. USA is the worst contry today for creating wars and generally causing as much trouble as they can so they reap all the profits. Yes war is big business for them, people everyehere need to wake up and tell them to butt out of other countries affairs. Why does America think that they are the only country allowed to have nuclear weapons? Why does America feel they have the right to dictate to everyone else? Why does America invade so many countries? Why does America start so many wars? Why does America not understand why they have so many nations dispise them?

20 Feb 2012 05:07p.m.

alec black wrote:

"Naughty, Naughty Iran....get to bed and no nuclear candy". PATHETIC twaddle...give them as many nukes as their air will carry.

20 Feb 2012 03:16p.m.

Greg wrote:

Doesnt Iran sell most of its oil to Russia and China.
This will just be a excuse for the commodity market to up the barrel price, it will have no effect on production.

20 Feb 2012 03:02p.m.

Mat wrote:

The EU says, more or less, "we aren't buying oil from you after July Iran, unless you change what you are doing, because you are being naughty", giving Iran an ultimatum which will affect them financially. Now, Iran says "well, we'll punish you for saying you will refuse to buy from us, by refusing to sell to you". Isn't this just coming to the the same result a few months earlier, that the EU won't be buying oil from Iran? So, theoretically, it would be even worse for Iran financially? Could someone please explain this to me? It seems like the EU and Iran are threatening each other to come to the same conclusion.

20 Feb 2012 11:18a.m.

Geoff wrote:

The quickest way to ensure that Iran gets nuclear bombs is to threaten it militarily or indeed to attack it. It has several friends that already have the bombs and associated technology. (Russia, India, China, Pakistan)
Unfortunately the western leaders normally act like teenagers who think they are bulletproof. That is why they continually overstep and end up in fights.

20 Feb 2012 09:36a.m.

AJ wrote:

And if Iran stops exporting to other European countries then what? Will they waltz in and take it like someone else did to Iraq?