South Africa may be hit with US sanctions over Iran oil imports

The South African Petroleum Industry Association (PIA) said on Friday that it would have to expedite requests to the United States for a postponement and temporary exemption from the economic sanctions if South Africa fails to slash its imports of Iranian petroleum.

“This is not a business decision for us. It involves a political decision about political pressure,” PIA Executive Director Avhapfani Tshifularo said.

“We expect a Cabinet decision by the end of the month, and we will allow ourselves to be guided by that,” Tshifularo said.

The report comes as South African crude oil imports from the Islamic Republic of Iran have increased to $434.8 million in March from $364 million in February.

South Africa’s Revenue Service said on April 30 that Africa's biggest economy imported 505,908 tons of Iranian crude in March, up from 417,188 tons the previous month.

South Africa has come under pressure from Washington to cut its crude imports from Iran in line with the sanctions designed to halt Tehran's nuclear energy program.

According to the March data, South Africa's crude imports totaled 1.6 million tons, with Nigeria supplying 38 percent, Iran 32 percent, Saudi Arabia 22 percent, and Angola the rest.

The US sanctions require foreign financial institutions to make a choice between transactions with the Central Bank of Iran and Iran’s oil and financial sectors or being banned from the US economy.

On January 23, the EU agreed to ban oil imports as well as petroleum products from Iran and freeze the assets of the Central Bank of Iran across the EU.