Japan to Carefully Analyze Impact of U.S. Sanctions on Iran

August 7, 2018

Tokyo- The Japanese government will carefully analyze the impact of the United States resuming some of its sanctions against Iran, Chief Cabinet Secretary Yoshihide Suga said Tuesday.

"We'd like to analyze the effects (of the sanctions) more carefully than ever and hope to continue discussing the matter with the United States so that (the sanctions) will not adversely affect the activities of Japanese companies," Suga said at a press conference.

Suga's statement came after the administration of U.S. President Donald Trump reinstated some of its sanctions against Iran on Tuesday, following the United States' exit in May from the 2015 nuclear deal between Iran and six major powers.

On concrete effects the sanctions will have on the Japanese economy, Suga declined to comment. Japanese trade minister Hiroshige Seko also told a press conference the same day that he will pay close attention to the effects of the sanctions on Japanese companies, as the implemented sanctions cover items including vehicles, steel and aluminum.

The United States plans to impose sanctions on Iranian crude oil in November.

"We've made a point (to the United States) in line with our stance that (the sanctions) should not negatively affect the stable supply of energy or Japanese firms' activities," Seko said on talks with the U.S. side held earlier this month.

Seko called on the United States to exclude Japan from its requirements to halt Iranian oil imports and said he will negotiate "tenaciously."

Japanese Finance Minister Taro Aso noted at a press conference the same day that the sanctions will have an impact on the financial sector as those in Japan who are doing business with Iran use Japanese megabanks for remittance.

"We have to handle the matter in advance (on the assumption that) such effects may show up," he added. Jiji Press