• Published 21:51 26.07.10
  • Latest update 21:51 26.07.10

Israel lauds new EU nuclear sanctions on Iran

Move sends Tehran clear message that behavior is unacceptable, foreign ministry says, calling on more nations to impose extra measures.

By Barak Ravid and News Agencies

Israel on Monday praised the EU after it imposed a new set of sanctions on Iran in an attempt to bring Tehran back to the negotiating table over its contentious nuclear program.

"The European moves sends a clear signal to Iran that it must abide by international demands," a foreign ministry spokesman said in a statement.

Iran nuclear plant in Bushehr, AP

Technicians measuring parts of Iran's Bushehr nuclear power plant in this undated photo.

Photo by: AP

"The make clear to [Iran ] the price of its current behavior and that the international community will not tolerate Iran's continual rejection of international norms," said spokesman Yigal Palmor. "We hope thse steps will be joined by similar sanctions from other nations."

Deputy Defense Minister Matan Vilnai said: "We welcome any diplomatic process that can cause Iran to reconsider its intention to acquire a nuclear capability."

The European Union on Monday formally adopted a package of new sanctions against Iran, targeting the country's foreign trade, banking and energy sectors. Canada followed suit with its own round of unilateral sanctions.

The U.S. also lauded the decision, saying it hoped wider sanctions would follow.

"These steps underscore the steadfast European and Canadian leadership to hold Iran accountable for its failure to meet its international obligations and set a high standard for global implementation of sanctions," said Secretary of State Hilary Clinton and Treasury Secretary Timothy Geithner in a joint written statement.

"The new measures contain important restrictions on Iran's ability to use its transportation infrastructure and energy proceeds to support its nuclear and missile programs," they said. "The strong restrictions and prohibitions on Iran’s ability to access the Canadian and European commercial and banking systems will further protect the international financial system from abuse by Iran."

Following the EU decision, Iran's envoy to the International Atomic Energy Agency (IAEA) said his country was ready to return to negotiations on a nuclear fuel swap without conditions, Iran's official IRNA news agency reported.

Talking of a letter that Iran handed to the IAEA about the proposed nuclear fuel swap, Iran's envoy to U.N. agency, Ali Asghar Soltanieh said:
"The clear message of this letter was Iran's complete readiness to hold negotiations over the fuel for the Tehran reactor without any conditions."

International concerns about Iran's uranium enrichment program have led to a tightening of economic sanctions against the Islamic Republic. The European Union on Monday formally adopted a package of new sanctions against Iran, targeting the country's foreign trade, banking and energy sectors.

In Tehran, Iranian Foreign Ministry spokesman Ramin Mehmanparast denounced the EU for its "confrontational" approach.

"Moving toward confrontational measures and supporting unilateral actions and damaging the atmosphere are not considered by us to be a good use of the opportunity," Mehmanparast said, according to the state television network's website.

Sanctions starting to bite

Only three cargoes of gasoline have reached Iran so far in July, according to a shipping document seen by Reuters, much less than the seasonal norm, as new sanctions divert ships carrying fuel.

A series of sanctions agreed since June over Iran's disputed nuclear program target the country's oil trade and industry, making it harder to do business with the Islamic Republic. The EU formally adopted its latest measures on Monday.

Iran is the world's fifth-largest crude exporter, but has to import around 40 percent of its gasoline needs because it does not have enough domestic refining capacity.

Traditionally during the summer holiday driving season, Iran needs 11-13 cargoes a month, a Dubai-based trader told Reuters.

The document seen by Reuters showed only three cargoes of gasoline had arrived this month and were supplied by Turkish refiner Tupras and Unipec, the trading arm of China's Sinopec.

The companies were not immediately available to comment.

Another cargo is expected to arrive from Venezuela at the Iranian port of Bandar Abbas, two Gulf-based traders said.

They were not aware any other cargoes were heading to Iran.

"The new rounds of sanctions are making things hard right now, and many ships are being diverted, so Iran is only getting a fraction of its actual summer demand," said a trader.

Earlier this month, the owner of a gasoline tanker refused to let the vessel sail to Iran from Turkey.

"Owners of ships are really worried right now about sending shipments to Iran and that's why Iran is looking for alternative companies and countries to import from," said a Gulf-based trader.

As the pressure has mounted on Tehran, the insurance market Lloyd's of London said it would not insure or reinsure petroleum shipments going to the country.

Lloyd's, which has 15 to 20 percent of the global marine insurance sector, is seen as a major influence on other insurance markets with more players pulling back from offering cover to Iran.

Major shipping associations have also created clauses in contracts that enable ship owners to refuse to deliver refined petroleum cargoes to Iran.
 

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