Gautam
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BEIJING (Reuters) - China has put
the brakes on oil and gas investments
in Iran, drawing ire from Tehran over
a pullback that officials and executives
said reflected Beijing's efforts to
appease Washington and avoid U.S.
sanctions on its big energy firms.
The stakes are high for OPEC's
second-largest producer, as China is
one of the only powers on the
international political stage capable of
providing the billions of dollars of
investment Tehran needs to maintain
the capacity of its strategic oil sector.
Four energy executives in Beijing
described retreats and slowdowns of
Chinese ventures in Iran in recent
months, even as China has bought
more crude from its Middle East
partner, which leans on Beijing for
backing and investment to counter
sanctions over its disputed nuclear
plans.
The slowing of China's energy
investments in Iran was prompted, at
least partly, by Beijing's efforts since
late 2010 to ease tension with the
Obama administration and cut the risk
of Chinese oil firms being hit by U.S.
sanctions that Congress has
vigorously backed, said officials.
President Barack Obama and key
members of his cabinet have pressed
Beijing to do more to help rein in
Iran's nuclear activities, and Vice
President Joe Biden raised the issue
during his recent visit to China, White
House spokeswoman Caitlin Hayden
told Reuters.
Obama, Biden and Secretary of State
Hillary Clinton "all have stressed the
need for continued Chinese restraint
in investing in Iran's energy sector, by
slowing down existing activities and
by not concluding any new deals,"
said Hayden.
U.S. officials have literally come
knocking at the doors of Chinese
energy executives, one of the
executives said.
"The Chinese are quietly taking credit
with U.S. officials for being
cooperative" on Iran, a senior U.S.
Congressional aide who closely follows
U.S.-China relations told Reuters.
"I really date it back to mid-to-late
2010, when they began to signal to
us very clearly: 'We can't say it
publicly, but you will notice that we're
not proceeding with these new
contracts,'" said the aide, who spoke
on condition of anonymity, citing the
sensitivity of diplomacy with China.
Tehran has noticed and has warned
Chinese firms they need to make
progress on energy projects. U.S.
pressure appears to have
compounded commercial tension over
the terms of Chinese energy
investments in Iran, and those strains
have grown this year.
There are no signs China will risk
rupturing its relationship with Tehran,
but ties could become testier and
harder to manage.
Beijing has worked to ensure United
Nations sanctions on Iran do not
imperil its energy investments and oil
and gas purchases. But unilateral U.S.
sanctions could be invoked to punish
Chinese firms with operations in the
United States for their work in Iran.
The Obama administration has
avoided taking that step, mindful that
such a move is likely to anger Beijing.
Western powers believe Iran is using
its nuclear program as a means to
build weapons. Tehran says it needs
nuclear-generated electricity.
international political stage capable of
providing the billions of dollars of
investment Tehran needs to maintain
the capacity of its strategic oil sector.
Four energy executives in Beijing
described retreats and slowdowns of
Chinese ventures in Iran in recent
months, even as China has bought
more crude from its Middle East
partner, which leans on Beijing for
backing and investment to counter
sanctions over its disputed nuclear
plans.
The slowing of China's energy
investments in Iran was prompted, at
least partly, by Beijing's efforts since
late 2010 to ease tension with the
Obama administration and cut the risk
of Chinese oil firms being hit by U.S.
sanctions that Congress has
vigorously backed, said officials.
President Barack Obama and key
members of his cabinet have pressed
Beijing to do more to help rein in
Iran's nuclear activities, and Vice
President Joe Biden raised the issue
during his recent visit to China, White
House spokeswoman Caitlin Hayden
told Reuters.
Obama, Biden and Secretary of State
Hillary Clinton "all have stressed the
need for continued Chinese restraint
in investing in Iran's energy sector, by
slowing down existing activities and
by not concluding any new deals,"
said Hayden.
U.S. officials have literally come
knocking at the doors of Chinese
energy executives, one of the
executives said.
"The Chinese are quietly taking credit
with U.S. officials for being
cooperative" on Iran, a senior U.S.
Congressional aide who closely follows
U.S.-China relations told Reuters.
"I really date it back to mid-to-late
2010, when they began to signal to
us very clearly: 'We can't say it
publicly, but you will notice that we're
not proceeding with these new
contracts,'" said the aide, who spoke
on condition of anonymity, citing the
sensitivity of diplomacy with China.
Tehran has noticed and has warned
Chinese firms they need to make
progress on energy projects. U.S.
pressure appears to have
compounded commercial tension over
the terms of Chinese energy
investments in Iran, and those strains
have grown this year.
There are no signs China will risk
rupturing its relationship with Tehran,
but ties could become testier and
harder to manage.
Beijing has worked to ensure United
Nations sanctions on Iran do not
imperil its energy investments and oil
and gas purchases. But unilateral U.S.
sanctions could be invoked to punish
Chinese firms with operations in the
United States for their work in Iran.
The Obama administration has
avoided taking that step, mindful that
such a move is likely to anger Beijing.
Western powers believe Iran is using
its nuclear program as a means to
build weapons. Tehran says it needs
nuclear-generated electricity.
Exclusive: China curbs Iran energy work
the brakes on oil and gas investments
in Iran, drawing ire from Tehran over
a pullback that officials and executives
said reflected Beijing's efforts to
appease Washington and avoid U.S.
sanctions on its big energy firms.
The stakes are high for OPEC's
second-largest producer, as China is
one of the only powers on the
international political stage capable of
providing the billions of dollars of
investment Tehran needs to maintain
the capacity of its strategic oil sector.
Four energy executives in Beijing
described retreats and slowdowns of
Chinese ventures in Iran in recent
months, even as China has bought
more crude from its Middle East
partner, which leans on Beijing for
backing and investment to counter
sanctions over its disputed nuclear
plans.
The slowing of China's energy
investments in Iran was prompted, at
least partly, by Beijing's efforts since
late 2010 to ease tension with the
Obama administration and cut the risk
of Chinese oil firms being hit by U.S.
sanctions that Congress has
vigorously backed, said officials.
President Barack Obama and key
members of his cabinet have pressed
Beijing to do more to help rein in
Iran's nuclear activities, and Vice
President Joe Biden raised the issue
during his recent visit to China, White
House spokeswoman Caitlin Hayden
told Reuters.
Obama, Biden and Secretary of State
Hillary Clinton "all have stressed the
need for continued Chinese restraint
in investing in Iran's energy sector, by
slowing down existing activities and
by not concluding any new deals,"
said Hayden.
U.S. officials have literally come
knocking at the doors of Chinese
energy executives, one of the
executives said.
"The Chinese are quietly taking credit
with U.S. officials for being
cooperative" on Iran, a senior U.S.
Congressional aide who closely follows
U.S.-China relations told Reuters.
"I really date it back to mid-to-late
2010, when they began to signal to
us very clearly: 'We can't say it
publicly, but you will notice that we're
not proceeding with these new
contracts,'" said the aide, who spoke
on condition of anonymity, citing the
sensitivity of diplomacy with China.
Tehran has noticed and has warned
Chinese firms they need to make
progress on energy projects. U.S.
pressure appears to have
compounded commercial tension over
the terms of Chinese energy
investments in Iran, and those strains
have grown this year.
There are no signs China will risk
rupturing its relationship with Tehran,
but ties could become testier and
harder to manage.
Beijing has worked to ensure United
Nations sanctions on Iran do not
imperil its energy investments and oil
and gas purchases. But unilateral U.S.
sanctions could be invoked to punish
Chinese firms with operations in the
United States for their work in Iran.
The Obama administration has
avoided taking that step, mindful that
such a move is likely to anger Beijing.
Western powers believe Iran is using
its nuclear program as a means to
build weapons. Tehran says it needs
nuclear-generated electricity.
international political stage capable of
providing the billions of dollars of
investment Tehran needs to maintain
the capacity of its strategic oil sector.
Four energy executives in Beijing
described retreats and slowdowns of
Chinese ventures in Iran in recent
months, even as China has bought
more crude from its Middle East
partner, which leans on Beijing for
backing and investment to counter
sanctions over its disputed nuclear
plans.
The slowing of China's energy
investments in Iran was prompted, at
least partly, by Beijing's efforts since
late 2010 to ease tension with the
Obama administration and cut the risk
of Chinese oil firms being hit by U.S.
sanctions that Congress has
vigorously backed, said officials.
President Barack Obama and key
members of his cabinet have pressed
Beijing to do more to help rein in
Iran's nuclear activities, and Vice
President Joe Biden raised the issue
during his recent visit to China, White
House spokeswoman Caitlin Hayden
told Reuters.
Obama, Biden and Secretary of State
Hillary Clinton "all have stressed the
need for continued Chinese restraint
in investing in Iran's energy sector, by
slowing down existing activities and
by not concluding any new deals,"
said Hayden.
U.S. officials have literally come
knocking at the doors of Chinese
energy executives, one of the
executives said.
"The Chinese are quietly taking credit
with U.S. officials for being
cooperative" on Iran, a senior U.S.
Congressional aide who closely follows
U.S.-China relations told Reuters.
"I really date it back to mid-to-late
2010, when they began to signal to
us very clearly: 'We can't say it
publicly, but you will notice that we're
not proceeding with these new
contracts,'" said the aide, who spoke
on condition of anonymity, citing the
sensitivity of diplomacy with China.
Tehran has noticed and has warned
Chinese firms they need to make
progress on energy projects. U.S.
pressure appears to have
compounded commercial tension over
the terms of Chinese energy
investments in Iran, and those strains
have grown this year.
There are no signs China will risk
rupturing its relationship with Tehran,
but ties could become testier and
harder to manage.
Beijing has worked to ensure United
Nations sanctions on Iran do not
imperil its energy investments and oil
and gas purchases. But unilateral U.S.
sanctions could be invoked to punish
Chinese firms with operations in the
United States for their work in Iran.
The Obama administration has
avoided taking that step, mindful that
such a move is likely to anger Beijing.
Western powers believe Iran is using
its nuclear program as a means to
build weapons. Tehran says it needs
nuclear-generated electricity.
Exclusive: China curbs Iran energy work
