Resolution of Greek concerns remains the stumbling block to EU sanctions against the import of Iranian crude, commencing 1 July, being agreed by foreign ministers on 23 January.
Greek foreign ministry spokesman Gregory Delavekouras emphasises that Greece needs to ensure its energy supply and “corresponding” financing terms. "It is within this framework that we will be participating in the 23 January meeting," he said. He told
Argusthat the sanctions package is still open for discussion.
Highly dependent on Iranian crude, Greece fears it will be unable to secure alternative supplies on similar financial terms to those in place for importing oil from Iran. To buy itself time, Athens has asked for an exemption to the oil embargo until 1 October, rather than 1 July, the date settled upon by other member countries. The Greeks also want a more "precise" pre-implementation review with "stronger" EU commitment. A senior EU diplomat told Argus that the Greeks were "rather happy" with the principle of a review clause. But the only clarification of the safeguard that Athens has received is that the EU would consider the review, planned for 1 May, at a political level.
The object of the review would be to ensure that the costs to EU members of implementing the sanctions do not outweigh the perceived benefits of punishing Iran for its nuclear programme. But it remains unclear what action the EU would take if the outcome of the review was negative.
There is sympathy for the Greeks but an EU official stressed that their problems in finding alternative oil supplies are linked to their sovereign debt problem. "Everybody understands the Greek problem. But you cannot come up with a quick solution," he said. And the EU needs to move “immediately” on sanctions, stressed the senior diplomat, conceding "Greece has a real problem because it had some good financial arrangements in its supply of oil from Iran."
He noted that contracts with Iran allow for a 60-day payment period with no financial guarantees. "Greece has always paid right on time. Iran was not asking for financial guarantees." Argus was told that there is "goodwill” from several oil producers. "But it will be more difficult with alternative suppliers. They will ask for guarantees," he said.
Other sanction issues appear more firmly settled. These include an asset freeze for the Iranian central bank as well as “one or two” other financial institutions involved in the country's contested nuclear programme. Brussels officials stress that the aim is not to stop all trade with Iran.
Candidate EU member countries, including Turkey, would be able to decide for themselves whether and when they join the EU's embargo. Ankara has made clear that it will not be joining the EU's embargo. The Turkish foreign minister has declined to lunch with his EU counterparts.