US to exempt India, S.Korea from Iran sanctions-aides

Reuters: The United States will exempt India, South Korea and five other countries from financial sanctions in return for cutting purchases of Iranian oil, but will not grant a waiver to China, Iran’s top crude buyer, congressional aides told Reuters on Monday.

(Reuters) – The United States will exempt India, South Korea and five other countries from financial sanctions in return for cutting purchases of Iranian oil, but will not grant a waiver to China, Iran’s top crude buyer, congressional aides told Reuters on Monday.

Aides said Turkey, South Africa, Taiwan, Malaysia and Sri Lanka would also be exempted from the sanctions.

The Obama administration is expected to announce the decision later on Monday. It means banks in the countries will be given a six-month break from the threat of being cut off from the U.S. financial system under sanctions signed late last year by President Barack Obama.

The sanctions, which go into effect on June 28, aim to strangle Iran’s nuclear program by cutting funding from its oil industry. The United States and the European Union believe Iran is trying to build nuclear weapons. Tehran says the program is strictly for civilian purposes.

Industry sources say China has received clandestine cargoes of oil from Iran, which has disabled tracking devices on some of its shipments.

In March, the United States granted exceptions to Japan and 10 EU countries for significantly cutting purchases.

(Reporting by Susan Cornwell, Timothy Gardner and Roberta Rampton; Editing by Sandra Maler and Dale Hudson)