In light of sanctions proposed by the US against Iranian crude oil exports, Turkey is working on a plan to avert difficulties on the matter. A working group has been formed to analyze the situation ahead of FM’s crucial visit to Washington

Serkan Demirtas - Hurriyet Daily News

Turkey is working on a plan to avert the political and economic difficulties it could face as a result of the Washington-proposed sanctions against Iranian crude oil exports, which make up nearly one third of the country’s daily consumption. Though Turkish officials voiced their intention to seek exemption from sanctions, (as they would only abide by U.N. Security Council resolutions), the government is weighing various ways to gradually reduce Iranian oil imports, including by using Saudi Arabia and Russia as potential alternative suppliers.

The United States imposed a fresh round of sanctions against financial institutions dealing with the Iranian Central Bank late December, aimed at hampering Iran’s crude oil exports to international markets. The U.S. is threatening to impose sanctions on the financial institutions of other countries if they “engage in a financial transaction for the sale or purchase of petroleum or petroleum products to or from Iran after 180 days of the enactment of the law,” signed by President Barack Obama on Dec. 31, 2011.

In official remarks, Turkey has openly said it would only implement sanctions if they were imposed by the U.N. Security Council but also added it would consider seeking an exemption from measures against Iran given its unique position. However, despite whether Turkey abides, the law will have a direct effect on Turkish financial institutions as a result of the country’s nearly 9 million tons of crude oil purchases from Iran. The country’s sole refiner, Tüpraş, renewed the deal to buy the same amount of oil from Iran in 2012, but Reuters reported that it was planning to meet Saudi Arabian oil authorities this month in order to secure an alternative supply. Tüpraş did not comment on the story late Friday.