Japan slaps additional sanctions against Iran over nuke program+

TOKYO, Sept. 3 Kyodo -
The Japanese government announced Friday a set of additional sanctions on Iran
over its nuclear program, including a freeze on the assets of those linked to
nuclear development and tighter supervision of financial transactions.
The newly introduced sanctions also include restrictions on fresh Japanese
investments in oil and gas development projects in Iran, but Tokyo decided not
to impose any import restrictions on crude oil. Iran is the third biggest crude
oil supplier to Japan.
The new punitive measures, approved by the Cabinet of Prime Minister Naoto Kan,
are to be unilaterally implemented by Japan in addition to steps announced on
Aug. 3 in line with a U.N. Security Council resolution.
On June 9, the U.N. Security Council adopted a resolution to impose fresh
sanctions on Iran after the country continued to defy international calls to
comply with its obligations under the International Atomic Energy Agency in
relation to its nuclear program. Iran has consistently maintained that its
nuclear program is strictly for peaceful purposes.
The move signals Japan's willingness to work closely with the United States and
the European Union in taking punitive actions against Iran. But it could
adversely affect traditionally friendly ties between the two countries and
cause trade relations to deteriorate.
Foreign Minister Katsuya Okada told a Cabinet meeting that it is important that
the international community is united in implementing sanctions under U.N.
resolutions against Iran and in urging Tehran to make ''wise decisions'' by
maintaining dialogue with the country.
Okada also pledged to seek a peaceful solution to the nuclear issue through
diplomatic channels. Japan traditionally maintains a close relationship with
Iran.
Chief Cabinet Secretary Yoshito Sengoku said at a regular press conference that
Japan introduced the new sanctions to help stop Iran's nuclear development and
promote nuclear nonproliferation. He also said the government will carefully
monitor the possible negative impact on Japan-Iran ties.
Okada later told a press conference, ''Iran is a long-term friend of Japan, and
we expect the country to seriously accept sanctions under the U.N. resolution
and try to allay international concerns.''
He also said Tokyo will urge other countries to refrain from pursuing business
profits by not implementing punitive measures against Tehran.
Okada alluded to a past case, in which a state-run Chinese firm increased its
stake in Azadegan, one of the largest oil fields in the Middle East, after a
major Japanese oil development firm gave up a large part of its interests in
the field in 2006 amid U.S. concerns over the project in connection with Iran's
nuclear ambitions.
Specifically, the fresh sanctions newly target 88 institutions, 24 individuals
and 15 banks as subject to the asset freeze. Permission from the Japanese
government is now required to make financial transactions with them under the
foreign exchange and foreign trade law.
The entities and individuals include the Islamic Revolutionary Guard Corps,
Islamic Republic of Iran Shipping Lines, Iran's state-owned Bank Mellat and its
head Ali Davandari. Japan also bans those individuals from entering Japan or
passing through the country.
With the implementation of the new steps, a total of 161 Iranian organizations,
65 individuals and 17 banks are now designated in Japan as subject to the asset
freeze.
Moreover, Japanese financial institutions are newly asked by the government to
refrain from concluding correspondent contracts with Iranian banks suspected to
be linked to the country's nuclear development activities.
Those Iranian banks are banned from opening branches in Japan, while Japanese
financial institutions are also not permitted to do so in Iran.
The Nippon Export and Investment Insurance, a Japanese government-linked
agency, will not newly underwrite medium- and long-term trade insurance,
effective for two years or longer, covering possible losses by Japanese
exporters to Iran.
The government also urges domestic businesses to refrain from engaging in
transactions with Iran in view of the June U.N. resolution.
==Kyodo
2010-09-03 23:32:02