S.Korea asks U.S. for "maximum flexibility" on Iran sanctions waiver

DL Holdings

30/10/2018 03:33

By Jane Chung
    SEOUL, Oct 30 (Reuters) - South Korea has asked the United
States for "maximum flexibility" on its request for a waiver to
prevent South Korean companies from being affected by renewed
U.S. sanctions against Iran, the foreign ministry said. 
    The sanctions against Iranian crude oil exports are set to
take effect on Nov. 5 as part of President Donald Trump's
efforts to force Tehran to accede to a more restrictive deal on
curbing its nuclear and missile programmes.  urn:newsml:reuters.com:*:nL8N1X65MU
    South Korea, a U.S. ally and one of Asia's biggest buyers of
Iranian oil, has already stopped crude imports from Iran. South
Korean building firms have also cancelled energy-related
contracts in Iran due to financing difficulties.
    Foreign Minister Kang Kyung-wha asked for the exemption in a
telephone call with U.S. Secretary of State Mike Pompeo late on
Monday, the ministry said in a statement. 
    "Minister Kang requested the U.S. side exert maximum
flexibility so that South Korea can secure an exemption to
minimise the damage to our companies," the ministry said.
    Pompeo said he noted Seoul's position and would continue
discussions on the matter, the ministry said. 
    The exemption issue is the latest sign of strain between
Seoul and Washington over a range of issues, especially the
enforcement of sanctions aimed at limiting North Korea's nuclear
and missile programmes.  urn:newsml:reuters.com:*:nL3N1X23YN
    South Korea and Japan have been in talks with the United
States in a bid to avoid adverse impacts from the reimposition
of U.S. sanctions on Iran. Both countries won waivers during the
previous round of sanctions that ended in 2016, but Washington
has adopted a more aggressive stance this time.  urn:newsml:reuters.com:*:nL4N1TT1VU
    South Korean buyers of Iranian oil have cut their purchases
in recent months due to expensive Middle East grades and
uncertainty over trade with Iran. Imports of Iranian oil fell to
zero in September for the first time since 2012.  O/KOREA1 
    Another risk for South Korean companies is that sanctions
will make it difficult to receive and make payments in dollars
for projects linked to Iran.  
    On Monday, Hyundai Engineering & Construction  000720.KS 
said it scrapped a 595 billion won ($521 million) deal to build
a petrochemicals complex in Iran due to lack of financing.
 urn:newsml:reuters.com:*:nS6N1TD00U 
    In June, Daelim Industrial  000210.KS  said a 2.23 trillion
won contract to build a refinery project in Iran was cancelled
due to financing problems.  urn:newsml:reuters.com:*:nL3N1T33TC 
($1 = 1,140.7100 won)

 (Reporting By Jane Chung; additional reporting by Hyonhee Shin;
Editing by Darren Schuettler)
 ((jane.chung@thomsonreuters.com; +82 2 3704 5667; Reuters
Messaging: jane.chung.thomsonreuters.com@reuters.net))