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Reuters) - The Obama administration is expected to extend exceptions on Iran sanctions to China and Singapore, perhaps as early as Thursday, two U.S. government sources said.
"There should be an announcement today," on China, Iran's top buyer of crude, and Singapore which buys fuel oil from the OPEC member, said one of the sources.
Earlier this month the administration granted exceptions to India and six other economies. Japan and 10 European Union countries got exceptions in March.
The sanctions seek to choke funding to Iran's nuclear program, which Western countries believe is aimed at making weapons. Tehran says the program is only for power and medical purposes.
Under the law President Barack Obama signed late last year, the administration can grant exceptions to countries that have "significantly reduced" their purchase of oil from Iran. The administration has not specified exactly the levels each country must cut, but Japan had trimmed imports by about 15 to 22 percent.
If China, whose imports from Iran fell in the first half of the year on a pricing dispute with Tehran, is granted an exception by the United States, the Obama administration risks severe criticism from sanction supporters on Capitol Hill. Energy industry sources expect China's imports from Iran to rise in June and July.
"I think we basically witnessed a game of chicken between the U.S. and China and the Obama Administration flinched first," a Senate Republican aide said, speaking on background.
The administration, however, is probably "prepared to take that risk because it would want to avoid a major diplomatic spat with Beijing" over the sanctions, said Mark Dubowitz, the head of the non-profit group Foundation for Defense of Democracies, which advocates tough sanctions on Iran.
Exclusive: U.S. expected to grant Iran sanction exceptions to China | Reuters
"There should be an announcement today," on China, Iran's top buyer of crude, and Singapore which buys fuel oil from the OPEC member, said one of the sources.
Earlier this month the administration granted exceptions to India and six other economies. Japan and 10 European Union countries got exceptions in March.
The sanctions seek to choke funding to Iran's nuclear program, which Western countries believe is aimed at making weapons. Tehran says the program is only for power and medical purposes.
Under the law President Barack Obama signed late last year, the administration can grant exceptions to countries that have "significantly reduced" their purchase of oil from Iran. The administration has not specified exactly the levels each country must cut, but Japan had trimmed imports by about 15 to 22 percent.
If China, whose imports from Iran fell in the first half of the year on a pricing dispute with Tehran, is granted an exception by the United States, the Obama administration risks severe criticism from sanction supporters on Capitol Hill. Energy industry sources expect China's imports from Iran to rise in June and July.
"I think we basically witnessed a game of chicken between the U.S. and China and the Obama Administration flinched first," a Senate Republican aide said, speaking on background.
The administration, however, is probably "prepared to take that risk because it would want to avoid a major diplomatic spat with Beijing" over the sanctions, said Mark Dubowitz, the head of the non-profit group Foundation for Defense of Democracies, which advocates tough sanctions on Iran.
Exclusive: U.S. expected to grant Iran sanction exceptions to China | Reuters
