France is pushing for faster enforcement of the European Union’s proposed ban on oil imports from Iran (OPCRIRAN), two officials with knowledge of the matter said. France wants the embargo to be delayed by no more than three months to allow nations including Greece, Italy and Spain to find alternative supplies, according to a French government official, who declined to be identified, citing state rules. While France is seeking a shorter exemption for existing crude purchase contracts, a six-month delay favored by more EU nations remains the more likely compromise, said the second person, an EU diplomat, who also asked not to be identified because the talks are confidential. Both officials spoke yesterday. EU foreign ministers are scheduled to decide on the ban, which will probably also include an exemption for Eni SpA (ENI), Italy’s biggest oil company, at a Jan. 23 meeting. The embargo requires unanimity among the bloc’s 27 states. Iran has threatened to block the Strait of Hormuz, through which almost 20 percent of the world’s oil flows, if exports are curbed. A gradual implementation of the embargo would satisfy the concern of nations most dependent on Iranian crude, including Italy, Greece and Spain. The three countries accounted for about 68 percent of EU imports from Iran in 2010, European Commission data show. Nations including Germany and the U.K. also favored the shortest delay, while nations most exposed to imports from Iran pressed for an exemption of as long as 12 months, the EU diplomat said. The EU will probably adopt a six-month phase-in, two people with knowledge of the matter said on Jan. 13. Atomic Weapons The U.S, and EU say Iran’s nuclear-development plans are aimed at building atomic weapons. The Islamic republic, the second-largest oil producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, says its program is for civilian purposes only. Crude for February delivery was trading at about $99.50 a barrel yesterday on the New York Mercantile Exchange. EU sanctions on Iran already include an embargo on equipment for and investment in the oil and natural gas industries. The bloc has also imposed restrictions on transfers of funds to and from Iran. A group of U.S. senators earlier this month called on the EU to impose sanctions on Iran’s central bank in addition to the planned oil ban. To contact the reporters on this story: Helene Fouquet in Paris at hfouquet1@bloomberg.net Ewa Krukowska in Brussels at ekrukowska@bloomberg.net; To contact the editors responsible for this story: Stephen Voss at sev@bloomberg.net; James Hertling at jhertling@bloomberg.net.

Source