Oil Exemption

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

June 12, 2012 (LBO) – Sri Lanka, India, Malaysia, Korea, South Africa, Turkey and Taiwan has been recognized as countries that have significantly cut oil imports from Iran, US secretary of state Hilary Clinton has said. Financial institutions of countries that traded with Iran faced the possibility of being penalized in international trade settlements by the United States, under sanctions imposed on Iran unless oil purchase volumes were cut.

Clinton said penalties would not apply for a six month period in the 2012 fiscal year, which could be renewed.

Iranian light crude has been the mainstay of raw material for Sri Lanka’s state-run oil refinery, but the country has since diversified its purchases to Oman and Saudi Arabia.

Countries reduced oil purchases however could escape penalties.

“We have implemented these sanctions to support our efforts to prevent Iran from acquiring a nuclear weapon and to encourage Iran to comply with its international obligations,” Clinton said.

“Today’s announcement underscores the success of our sanctions implementation.

“By reducing Iran’s oil sales, we are sending a decisive message to Iran’s leaders: until they take concrete actions to satisfy the