Japan pledges major cut in Iran oil imports

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Japan pledges major cut in Iran oil imports

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Tokyo has already reduced its Iran oil shipments by 40 percent over the past five years.

21 March,2012 09:41 am

Japan said Wednesday it would continue to cut its oil imports from Iran considerably, while hailing a US decision to exempt it from new sanctions against doing business with the nuclear aspirant.We have explained to the US side that this trend will accelerate in the future and that we will carry out our reductions considerably, Chief Cabinet Secretary Osamu Fujimura told reporters.Fujimura did not elaborate on planned cuts. But Japans Economy, Trade and Industry Minister Yukio Edano said that Tokyo has already reduced its Iran oil shipments by 40 percent over the past five years.The United States on Tuesday said it was exempting Japan and some European Union members from tough new sanctions aimed at pressing Tehran over its nuclear programme.Japanese Finance Minister Jun Azumi described the US decision as an achievement of negotiations.I believe the United States welcomes Japans response, including actions it will take in future (to cut imports), he told reporters onWednesday.Last year, Iranian oil accounted for about 8.8 percent of Japans total crude imports, according to the Petroleum Association of Japan, or some 3.6 million barrels a day.The country buys about half its oil from Saudi Arabia and the United Arab Emirates, but Edano warned that imports of Iranian crude wont become zero immediately.The US sanctions bar financial institutions that do business with Iran from operating in the United States, effectively making them choose between the Islamic republic and the worlds largest economy and banking superpower.