Japan May Cut Iran’s Crude By 20%

Japan may cut Iranian crude oil imports by a more-than-expected 20 per cent, as it seeks a waiver from U.S. sanctions, said a report on Thursday.

This is a move which would spare its banks from a major blow but could boost its already rising fuel import bill.

Japan, the world’s third biggest oil importer, last year bought almost nine per cent of its crude from Iran and its dependence on fuel imports has increased.

Fuel import rose for Japan, because almost all its power-generating nuclear reactors have been shut, after the Fukushima nuclear disaster a year ago.

In a report datelined Washington, and which did not cite any sources, the Nikkei business daily newspaper said Japan and the U.S. would reach a basic agreement by the end of February .

The accord would be on how Japan would reduce its dependence on Iranian oil without incurring financial sanctions.

Government spokesman, Osamu Fujimura confirmed Japan and the United States were likely to reach an agreement in February but declined to say if Tokyo had set a specific target for cuts.

“Working level officials are working for waivers from the sanctions, possibly within this month. But a number has not been decided,” Fujimura told reporters.