U.S. Issues Eight Waivers From Iran Oil Sanctions
China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey get waivers to allow continued ‘temporary’ oil imports
WASHINGTON—The Trump administration issued waivers on Monday to eight governments, exempting them from sanctions on Iranian oil that took effect at midnight.
China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey received waivers that would allow them to continue “temporary” imports of Iranian crude without facing penalties, Secretary of State Mike Pompeo said Monday morning.
Washington imposed a ban on Iranian oil imports and sanctioned more than 700 Iranian banks, companies and individuals, officially launching the second phase of its maximum pressure campaign.
Treasury Secretary Steven Mnuchin said Monday morning that the Iranian regime “will face mounting financial isolation until they fundamentally change their destabilizing behavior.”
Asked about the reaction from European countries—particularly those not granted waivers—Mr. Pompeo cited broad support for the administration’s approach. “There are more than three” countries in Europe, the secretary said, a reference to the “E3”: France, Germany and the U.K., which didn’t receive waivers. The E3 countries have worked to preserve the Iran nuclear deal following the U.S. exit.
Mr. Mnuchin said, “There are certain transactions that they can continue to do, whether they’re humanitarian transactions or certain trade in the restricted accounts.”
Iran has said it would resist the sanctions and defied Washington’s efforts to change its behavior.
Iran’s international sales have fallen by a third in the lead-up to the second round of economywide sanctions, but top Trump administration officials say they are seeking to cut Tehran’s exports to zero in the coming months, threatening to punish anyone caught violating its crude embargo.
In addition to targeting Iran’s core revenue generation, the Treasury Department blacklisted 70 Iranian banks and other financial institutions, including their foreign and domestic subsidiaries. Treasury also targeted hundreds of companies, individuals, aircraft and boats in an effort to isolate the country from global finance and commerce.
Some of the banks have been sanctioned for transactions allegedly linked to Iran’s missile program, human rights abuses and terror finance.
Seeking to replicate the success of the sanctions imposed by the Obama administration which led to the 2015 nuclear deal, the Trump administration wants to deprive Tehran of the cash it uses to finance U.S.-designated terror groups and regional conflicts, and coerce the theocratic government into signing a comprehensive nuclear, missile and security agreement.
The Trump administration, through the threat of sanctions, also forced the global financial messaging service Swift, which eases cross-border transactions for banks, to disconnect some Iranian banks from its service. That threat against the Belgium-based service further fueled tensions with Washington’s trans-Atlantic allies, who largely opposed the U.S. decision to exit the nuclear accord.
“In keeping with our mission of supporting the resilience and integrity of the global financial system as a global and neutral service provider, SWIFT is suspending certain Iranian banks’ access to the messaging system,” Swift said in a statement. “This step, while regrettable, has been taken in the interest of the stability and integrity of the wider global financial system,” it said.
Swift is only required by U.S. law to disconnect some of the 70 Iranian banks and financial institutions blacklisted by the Treasury, those that are connected to financing of weapons of mass destruction, financing of terror groups and those connected to human-rights abuses. Besides contributing to the political and financial isolation for Tehran, Swift’s decision will also raise Iran’s trade and finance costs and make international transactions far more difficult.
Top administration officials last week threatened to punish Swift if it failed to abide by U.S. sanctions law, with the firm’s board at risk of being blacklisted by the U.S. Treasury, having their assets frozen and causing major complications for their financing.