Seoul eager to minimize fallout from crude imports cuts

By Kim Young-jin

Korea and the United States are in full consultation mode as Seoul seeks ways to buffer against economic disruptions from joining Washington’s campaign to sanction Iran over its alleged nuclear weapons program.

Robert Einhorn, U.S. special adviser for nonproliferation and arms control, arrives today in Seoul to discuss the Lee Myung-bak administration’s cooperation for the sanctions and is expected to hold high-level talks Tuesday.

In play is Seoul’s importation of crude oil from the Middle Eastern country that represents almost 10 percent of local consumption. The sanctions would ban those dealing with Iran's central bank from accessing the U.S. financial system.

Seoul is expected to request exemption from the sanctions during the talks with Einhorn while gradually reducing its imports from Tehran. The administration will urge local companies to seek alternative sources.

Under one scenario, the nation could initially cut its percentage of Iranian crude oil to 8.3 percent ahead of future reductions to cushion against adverse effects.

An official of the Ministry of Foreign Affairs and Trade said the allies were likely to reach a mutually beneficial situation through vigorous diplomacy.

Meanwhile, Prime Minister Kim Hwang-sik on a trip to Oman asked his hosts to cooperate in energy importation in case Tehran follows through on its threat to close the Strait of Hormuz. Kim was on a trip to the region to explore the possibility of increasing imports from Oman and the United Arab Emirates.

Tehran threatened to close the vital shipping lane for oil transportation over the U.S.-led sanction campaign. Washington says Iran’s nuclear program is intended for manufacturing nuclear weapons.

Oman’s Sultan Qaboos and Deputy Prime Minister Fahd al-Said promised their country’s support, reports said.