US exempts China from Iran oil sanctions

Washington, June 29 (ANI): The Obama administration has cleared China of possible U.S. sanctions after determining that the county has significantly reduced its oil purchases from Iran.

The State Department had previously exempted 19 other countries from penalties for doing business with Tehran.

Secretary of State Hillary Clinton said the reductions of purchases of Iranian oil by countries such as Japan, South Korea and Spain 'are a clear demonstration to Iran's government that Iran's continued violation of its international nuclear obligations carries an enormous economic cost.'

According to The Wall Street Journal, the move leaves China, the biggest buyer of Iranian oil, potentially shut out of doing business with the U.S.

The U.S. determined that China met the requirements because its purchases of Iranian crude fell about 25 percent in the first five months of the year.

According to the paper, China's reduction in oil imports took place in the first few months of 2012 because of a pricing dispute between Beijing and Tehran, rather than compliance with U.S. sanctions.

In May, Chinese imports of Iranian oil jumped 39 percent from April, to more than 500,000 barrels a day roughly the same level of imports as last year.

Beijing has opposed the latest round of U.S. sanctions, which ban companies that deal with Iran's central bank from doing business in the U.S.

Chinese officials said this month that purchases of Iranian oil are 'legitimate.' (ANI)