The Significant Reduction Exemptions (SREs) granted last November to eight countries by the US for Iranian crude oil imports will not be renewed and are due to expire on 2 May 2019, the US State Department announced.
As previously reported, the US secondary sanctions were re-imposed against the purchase and carriage of Iranian crude oil, petroleum products, liquified gases and petrochemicals in November 2018.
However, eight countries, including China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey, received waivers, in order to continue to import limited amounts of Iranian crude oil.
These so-called Significant Reduction Exemptions (SREs) were given for limited period and are due to expire on 2 May 2019.
In a statement Monday, the US State Department reiterated that none of these SREs will be renewed and that and and all purchases and shipments of Iranian crude cargoes after this date will be in breach of US sanctions.
We have had extensive and productive discussions with Saudi Arabia, the United Arab Emirates, and other major producers to ease this transition and ensure sufficient supply. This, in addition to increasing US production, underscores our confidence that energy markets will remain well supplied,
…the US State Department announced.
Further, in clarification provided to the West P&I Club’s US attorneys Freehill, Hogan & Mahar, the State Department said that in their view all shipments under SREs must be completed by the 2 May deadline.
It would therefore seem clear that there be little or no sympathy shown by the US authorities for any vessel which has not completed an SRE voyage and discharged its cargo by latest 2 May 2019,
…the Club explained.