|
 Tough international sanctions over the past two years have cut
Iran's oil exports in half. U.S. measures imposed a year ago stopped
the remaining importers of Iranian oil from transferring cash to
Tehran, starving the OPEC member of its principal source of hard
currency and forcing Iran to the negotiating table over its disputed
nuclear program.
Tokyo's role in sending the first funds may be a boon for Japanese
firms jostling for position with international rivals to invest in
Iran's oil and gas sector, should a further agreement end Tehran's
international isolation.
It is unclear why Japan was the first of Iran's oil buyers to pay.
China, India and South Korea also buy crude from Iran and all have
billions of dollars of cash held in Iranian accounts pending
transfer.
The Iranian funds were released earlier this week from an account
held by the Bank of Japan, three sources told Reuters speaking on
condition of anonymity because of the sensitivity of the issue. One
of the sources confirmed the amount was for $550 million, while
another said it was likely further releases of Iranian funds would
be made by Japan as they come due.
A substantial portion of frozen Iranian funds are held at the Bank
of Japan, one of the sources said.
The funds were transferred to an Iranian Central Bank account in
Switzerland, a U.S. Treasury spokeswoman said earlier this week.
Under a November 24 agreement with six major powers, Tehran gets
limited sanctions relief in exchange for steps to curb its nuclear
program.
The interim agreement gives Iran access to $4.2 billion of its oil
revenues frozen abroad if it carries out its part of the deal, while
parties continue negotiations for a final agreement within a year.
The next round of talks starts on February 18.
The West suspects Iran was using the nuclear program to develop
nuclear weapons. Iran says the program was to generate electricity
and for medical isotopes.
Some payments under the six-month deal, which officially began on
January 20, depend on Iran fulfilling its commitment to dilute half
of its 20 percent enriched uranium to no more than 5 percent
enriched uranium.
SANCTIONS PAIN
Until the interim deal, Iran's importers had been steadily reducing
purchases to avoid falling foul of U.S. and European Union
sanctions.
The four Asian buyers together cut oil imports from Iran by 15
percent on the year to an average of 935,862 barrels per day (bpd)
in 2013, government and industry data showed.
The decades-long U.S. campaign to isolate Iran has choked foreign
investment and barred access to the latest technology to exploit the
country's vast oil and gas reserves.
Iranian President Hassan Rouhani said last month that Iran was
seeking a comprehensive agreement so it can develop its battered
economy, inviting Western companies to seize opportunities now and
promising oil executives a new, attractive investment model for oil
contracts by September.
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Oil and other companies from France and Russia have already
responded.
Iran welcomed a senior French trade delegation to the country on
Monday, telling more than 100 executives that the far-sighted among
them stood to win the race for business following an easing of some
economic sanctions.
A source close to the delegation told Reuters it was the most senior
group of executives and financiers to visit Iran since the 1979
revolution.
Japanese banks and other companies have been cautious about
approaching Iran because of the fear of running afoul of U.S.
sanctions if the current opening falters, bankers and officials
said.
Japan's Mitsubishi UFJ Financial Group paid a $9 million fine in
2012 to U.S. regulators to settle charges that it had violated U.S.
sanctions with payments to Iran that dated back to 2007.
It will take some time before investment materializes and oil flows
return to their pre-sanction levels.
Iran cannot get its next installment of $450 million on March 1
unless the International Atomic Energy Agency confirms Tehran has
done half the necessary dilution of its enriched uranium, according
to a Treasury fact sheet.
The following is a table outlining the payments totaling $4.2
billion and their conditions to Iran following the November
agreement between Tehran and the five powers.
|
Feb. 1 |
$550 million |
Paid,
transferred from Bank of Japan |
|
March 1 |
$450 million |
Contingent on
confirmation of dilution of half of Iran's stockpile of
near-20 percent enriched uranium it is required to dilute |
|
March 7 |
$550 million |
|
|
April 10 |
$550 million |
|
|
April 15 |
$450 million |
Contingent on
confirmation dilution of the rest of Iran's stockpile of
near-20 percent enriched uranium it is required to dilute |
|
May 14 |
$550 million |
|
|
June 17 |
$550 million |
|
|
July 20 |
$550 million |
Contingent on confirmation Iran has
fulfilled all of its commitments |
(Additional reporting by Taiga Uranaka and Linda Sieg;
writing by
Aaron Sheldrick; editing by Simon Webb and Alex Richardson)
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