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EU seeks alternative supplies in Iran oil embargo talks

AFP, Brussels, 6 Jan 2012 – EU nations hoping to reach a deal to slap an oil embargo on Iran by the end of the month are seeking alternative supplies for European nations dependent on imports from Tehran, diplomats said Friday.
‘The entire EU is working with the US and others to find alternatives, a lot of groundwork was completed during the Christmas break,’ said an EU diplomat on condition of anonymity.
A senior EU official, who also asked to remain anonymous, said exploratory contacts were under way ‘notably with Saudi Arabia to examine whether it could increase production to offset the loss of Iranian crude.’
While European Union governments have reached an agreement in principle on an embargo, nations are divided on when to phase out existing contracts — particularly for the likes of Greece, Spain and Italy that import Iranian crude.
‘The main issue at talks on the oil embargo is when to halt current contracts,’ said another EU diplomat. ‘We haven’t reached agreement yet, but we will have a deal by the end of January.’
In 2010, oil from Iran amounted to 5.8 percent of total EU imports, making Tehran the bloc’s fifth-largest supplier after Russia, Norway, Libya and Saudi Arabia, according to EU statistics.
It represented 14.6 percent of Spain’s total oil imports, 14.0 percent of Greece’s and 13.1 percent of Italy’s.
‘Some countries are asking for a longer term transition to phase out pre-existing contracts, others are pushing for quick action,’ said one of the diplomats.
‘There are several proposals on the table, reaching from one to three months, up to one year,’ said a third diplomatic source.
Debt-laden Greece was quoted as wanting up to 12 months to sign off on contracts, while Italy’s new premier Mario Monti this week called for a gradual step-by-step suspension of deliveries and for the embargo to exclude a billion-euro debt contracted by Iran with national oil firm ENI.

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