WASHINGTON: US President Barack Obama on Tuesday renewed a legal restriction that forbids foreign financial institutions from purchasing petroleum and petroleum products from Iran.

The restriction has prevented energy-starved Pakistan from completing a pipeline project for bringing natural gas from Iran.

A presidential determination, issued by his office, referred to a report the US Energy Information Administration sent to Congress on April 30.

Also read: Pakistan, Iran eye trade at $5 billion

President Obama noted that the report and other relevant factors, including “global economic conditions, increased oil production by certain countries, and the level of (oil) spare capacity,” allowed him to renew the restriction.

“I determine … that there is a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions,” he said, adding that he would “continue to monitor this situation closely.” The statement also referred to a law that forbids financial transactions with Iran.

Under this law, foreign financial institutions that knowingly facilitate significant financial transactions with the Central Bank of Iran or with Iranian financial institutions designated by the US Treasury risk being cut off from direct access to the US financial system. They can also face sanctions.

Published in Dawn, May 20th, 2015

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