Japan private backers to indemnify Iranian oil

Japan private backers to indemnify Iranian oil

Iran’s crude oil buyers in Japan are changing back to private insurance providers as the European Union (EU) is expected to start relaxing sanctions against Iran.
Japan’s main ship insurer – Japan P&I Club (JPI) – hopes to resume its normal coverage of USD 7.6 billion for each tanker carrying crude oil from Iran.
The EU is expected to start partial lifting of sanctions against Iran right after Tehran starts implementation of its nuclear agreement with the Sextet of world powers.
The development will occur after the International Atomic Energy Agency (IAEA) inspectors confirm the same day that Iran has started work on a set of its obligations under the nuclear deal sealed on November 14, 2013.
A Japanese government official said details are being worked out for the switch to private insurers.
On January 12, Iran and the Sextet of world powers finalized an agreement to start implementing the Geneva nuclear deal from January 20. The accord is aimed at setting the stage for the full resolution of the West’s decade-old standoff with Tehran over its nuclear energy program.
If everything takes place according to the plan, EU companies will be authorized to insure or transport Iranian crude oil to Tehran’s major customers, China, India, Japan, Korea, Turkey and Taiwan.
Source: National Iranian Oil Company

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