In an attempt to counter US-led EU insurance bans against Iran, Japan's cabinet has submitted a bill to the country’s parliament that allows the government to provide insurance cover for tankers importing Iranian crude, instead of seeking such cover from the EU.
The bill would enable the Japanese government to offer insurance cover up to USD 7.6 billion for tankers carrying Iranian crude once the EU ban on buying and insuring Iran’s oil consignments takes effect on July 1, Japan's Transport Ministry said in a statement on Monday.
On January 23, under pressure from the United States, EU foreign ministers approved new sanctions against Tehran, banning oil imports from Iran across the European Union, which also includes extending insurance coverage for tankers carrying Iranian crude.
In March, the United States exempted Japan from financial sanctions against Iran.
Ignoring the US and EU sanctions on Iran’s oil, many East Asian customers of Iranian crude, including China, South Korea, and Japan are willing to maintain their imports from Iran to meet their domestic energy demands.
The United States, Israel, and some of their allies accuse Tehran of pursuing military objectives in its nuclear energy program.
Iran rejects such allegations, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, it has the right to use nuclear technology for peaceful purposes.