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Tuesday, January 17, 2012

South Korea: US presses for cut of Iranian oil

Korea Times

US presses Seoul to cut Iranian oil

By Kim Young-jin

A senior U.S. official urged Korea to reduce its crude oil imports from Iran, Tuesday, as part of a U.S.-led sanctions campaign over Tehran’s alleged nuclear weapons program, saying Washington would work closely to minimize adverse effects on the local economy.

The stance was relayed by Robert Einhorn, U.S. special adviser for nonproliferation and arms control, during talks with foreign ministry officials here. Seoul responded in a statement that it would cooperate but that “more discussions with the U.S. were needed."

Einhorn’s three-day visit, which ends today, came amid growing tensions in the Middle East after President Barack Obama last month signed a bill imposing tough penalties on financial institutions dealing with Iran’s central bank.

“We are urging all of our partners to help us, work with us to increase pressure on the government of Iran to negotiate,” Einhorn said during the talks. "We are urging them to reduce their purchases of crude oil from Iran and to unwind their financial dealings with the central bank of Iran.”

The envoy, however, stressed, "We want to do this while being very sensitive to the economic interests of our close allies” such as South Korea and that he was confident the sides could “do it without the adverse effects that I know many in South Korea are concerned about."

The campaign has raised concerns in Korea which imports nearly 10 percent of its crude oil from the Middle Eastern country, a figure that has increased recently. The South deals with Iran's central bank to pay for the shipments.

An official said on condition of anonymity that Seoul was making efforts to gradually reduce the oil imports but that differences remained over the level of the possible reduction.

Underscoring the significance of the toughened measures, Einhorn tied the allies’ cooperative efforts over Iran to those on denuclearizing North Korea.

"I think progress in one will help us achieve progress in another," he said. "That's why it is so important that our two governments work closely together on this Iran problem."

The two countries have worked for years to denuclearize Pyongyang, with the Obama administration pledging to remain in lockstep coordination with Seoul on the matter.

Despite the jitters, Deputy Foreign Minister Kim Jae-shin said during the talks that Seoul was "committed to strongly support and participate in international efforts to resolve this issue," while adding he hopes the sides could closely cooperate to minimize adverse effects.

Einhorn was accompanied by Daniel Glaser, the U.S. Department of Treasury's deputy assistant secretary for terrorist financing and financial crimes. The delegation also met officials from the finance and energy ministries.

It remained to be seen what measures the allies will come up with. Korea has already banned hundreds of Iranian firms or individuals through its own sanctions but has yet to move on petrochemicals or crude oil.

Under one scenario that has been floated, the nation could roll back its percentage of Iranian crude oil to the 8.3 percent level from 2010 ahead of future reductions to cushion against adverse effects.

Tehran has threatened to close the vital Strait of Hormuz shipping lane for oil transportation over the sanction campaign. Washington says Iran’s nuclear program is intended for manufacturing nuclear weapons.

Meanwhile, the sides are also set to hold talks in Washington along with Japan over the situation in North Korea, where the death of ruler Kim Jong-il has thrown prospects for denuclearization talks into limbo.

Lim Sung-nam, Seoul’s chief negotiator on the North’s nuclear activities will participate in the talks with his Japanese counterpart Shinsuke Sugiyama and Kurt Campbell, Washington's point man on Asia.

http://koreatimes.co.kr/www/news/nation/2012/01/116_103053.html

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