US Cites Progress In Curbing Iranian Oil Business

30 September 2010

The energy giant Total headquarters in the business district of La Defense, West of Paris, France (file photo)

The Iran sanctions announcement was the second from the State Department in two days, and reflects a stepped-up U.S. effort to try to prod Iran back to nuclear talks with economic pressure.

Deputy Secretary of State James Steinberg told reporters that the United States has gotten commitments from four European oil companies to terminate investments and avoid any new activities in Iran's energy sector.

He said the four companies, Total of France, Statoil of Norway, ENI of Italy, and Royal Dutch Shell of Britain, would thus be spared from far-reaching financial penalties - authorized by the U.S. Congress in June - against companies operating in the United States that do business with Iran.

At the same time, Steinberg said the Obama administration will impose sanctions against the Naftiran Inter-trade Company, or NICO, a Swiss-based subsidiary of Iran's state oil company.

State Department officials acknowledged that the sanctions, barring U.S. business dealings with the company and freezing any U.S. assets it may have, will have little or no practical impact on NICO.

However, Steinberg said the blacklisting will discourage others from doing business with the firm. He said the growing web of U.N. Security Council and other nuclear-related sanctions against Iran is having an impact, despite denials from Iranian officials.