Iran - Non-renewal of SREs

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In November 2018, The United States Department of State granted Significant Reduction Exemptions (SREs) to China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey allowing them to import limited amounts of Iranian crude oil. These SREs are due to expire on 2 May 2019 and the US Department of State has announced that they will not be renewed or extended. 

A statement issued by the White House confirmed the same decision not to renew the SREs beyond 2 May 2019. 

The US Department of State quoted Secretary Pompeo as follows “I am announcing that we will no longer grant any exemptions. We’re going to zero – going to zero across the board. We will continue to enforce sanctions and monitor compliance. Any nation or entity interacting with Iran should do its diligence and err on the side of caution. The risks are simply not going to be worth the benefits.”

It is understood that prior to these announcements, countries with SREs had been informed the SREs would not be renewed and, therefore, that the expectation of the State Department is that Iranian crude shipments should arrive in SRE countries before the 2 May 2019. This would appear to mirror the recent more aggressive approach of the US to enforcing sanctions.

Further general information about sanctions is available on the Steamship website and members may contact their usual club contact.