South Korea Calls for 'Maximum Flexibility' from the U.S. on Iran Sanctions

On Tuesday, November 8, Reuters reported, citing the South Korean Foreign Ministry, that the country is requesting 'maximum flexibility' from the United States regarding its request for exemptions for South Korean companies affected by the reinstatement of sanctions on Iran. This issue was raised during a phone conversation on Monday night between South Korean Foreign Minister Kang Kyung-wha and his American counterpart Mike Pompeo. The second round of U.S. sanctions against Iran will be reinstated on November 14, including sanctions on Iranian oil exports. American officials have stated their determination to bring Iranian oil exports to zero by that time, and these sanctions are part of the Trump administration's efforts to bring Iran back to the negotiating table for a new agreement. Reuters noted that South Korea, a key U.S. ally in East Asia, has been one of the largest buyers of Iranian oil in recent years but has recently halted its imports from Iran, and South Korean companies have canceled their energy contracts with Iran due to investment issues. Now, as the South Korean Foreign Ministry has announced, Kang Kyung-wha has requested that the U.S. apply maximum flexibility to ensure minimal damage from the sanctions to South Korean companies. According to the report, the U.S. Secretary of State also emphasized that he is considering South Korea's position and that discussions on this matter will continue. Reuters reminded that South Korea and Japan have held talks with U.S. officials to ensure they remain unaffected by the return of U.S. sanctions against Iran. Both countries had received exemptions from the U.S. during the imposition of sanctions prior to the nuclear agreement with Iran, although the U.S. position is now much tougher than it was at that time. According to Reuters, South Korean buyers of Iranian oil have recently reduced their purchases, and last month, their imports from Iran reached zero for the first time since 2012. South Korean companies are also concerned that with the imposition of sanctions, they will not be able to conduct transactions in dollars for projects related to Iran. On Monday, Hyundai Engineering and Construction announced that it had canceled a $521 million contract for constructing a petrochemical complex with Iran due to financing issues. Earlier, in June, Daelim Industrial of South Korea had announced that it had canceled its $2 billion contract with Iran related to a refinery project.