A recent report says Japan is expected to raise its insurance cover for tankers carrying Iranian crude to USD7.8 billion in 2013.
According to a report published by Platts on Friday, Japan will probably increase its insurance cover by four percent in the fiscal year of 2013-2014.
The increase in insurance cover, expected to come into effect on April 1, is due to a decision by the International Group of P&I Clubs to increase its maximum reinsurance cover in 2013-14 fiscal year.
On June 20, 2012, Japan’s parliament endorsed a bill to provide USD7.6 billion in guarantees to ship owners that transfer Iranian crude oil after the European Union imposed sanctions banning the union’s members from purchasing Iran's oil or extending insurance coverage for tankers carrying its crude in January 2012. The EU bans entered into force on July 1, 2012.
The US, Israel, and some of their allies have repeatedly accused Iran of pursuing non-civilian objectives in its nuclear energy program.
Using the unfounded allegation as pretext, the US and its European allies have imposed unilateral sanctions against the Islamic Republic.
Iran rejects the allegation, arguing that as a committed signatory to the Non-Proliferation Treaty and a member of the International Atomic Energy Agency it is entitled to develop nuclear technology for peaceful purposes.