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Tanzania could surrender to US sanctions threat over Iran oil

Thursday July 05 2012
kikwetye

Tanzanian President Jakaya Kikwete. Tanzania may soon follow Kenya in surrendering to a US sanctions threat over an alleged violation of an embargo on Iranian oil exports. File

Tanzania may soon follow Kenya in surrendering to a US sanctions threat over an alleged violation of an embargo on Iranian oil exports.

Congressman Howard Berman, a senior member of the US House Committee on Foreign Affairs, warned President Jakaya Kikwete Thursday that Tanzania could face US punishments for enabling Iran to ship crude oil.

Berman said Tanzania had allowed its flag to be used on at least six and as many as 10 Iranian oil tankers, in effect helping Iran evade US and European Union sanctions aimed at pressuring Tehran to curb its nuclear programme..

Tanzania Foreign Minister Bernard Membe said in response that Tanzania “will take steps to deliberately obliterate the registration” if it is confirmed that Iranian ships are flying Tanzania's flag.

Such a back-down in the face of US warnings would follow Kenya's quick cancellation an oil deal with Iran after Washington made clear it would impose sanctions on Nairobi.

Kenya on Wednesday said it had cancelled its oil deal with Iran after the US warned of unspecified sanctions for dealing with Tehran.

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“It is profoundly disappointing to me to learn that your government has acted in contravention of the broad international coalition that is working together to use peaceful means, including economic sanctions, to change the threatening behavior of the Iranian regime,” Berman told Kikwete in a letter dated June 29.

Kenya had earlier this week said it would import four million tonnes of crude oil from Iranian National Oil Company, drawing the wrath of its long-time ally.

The cancellation of the agreement is expected to avert economic sanctions that the US could have imposed on Kenya, a move that would have hurt the multi-billion shilling trade flows between the two countries.

Western powers are implementing sanctions against Iran for its controversial nuclear programme, with the US piling pressure on Kenya to follow suit or also face sanctions. “It would be preferable that Tanzania take this action of its own accord,” the California Democrat added.

“However, your government should take note of President Obama’s Executive Order 13608, signed May 1, 2012, which provides for the imposition of sanctions on any entity worldwide, including foreign governments, that assists Iran in evading US sanctions.”

Tanzania receives large amounts of US aid, including a $698 million development package awarded in 2008 on the basis of its compliance with a set of policy standards. The five-year grant is the biggest ever given by the US Millennium Development Corporation.

Berman warned Kikwete that such assistance will be put in jeopardy if Tanzania does not respond positively to the US demand. “If Tanzania were to allow Iranian vessels to remain under Tanzanian registry,” Berman wrote, “we in the Congress would have no choice but to consider whether to continue the range of bi-lateral US programmes with Tanzania.”

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