Showing posts with label Iran. Show all posts
Showing posts with label Iran. Show all posts

Saturday, March 31, 2012

South Korean oil imports from Iran continues to rile US

What a difference half a decade makes. In the mid-2000s, the K-blogosphere frequently characterized Seoul as a bad ally of Washington. I believe it was One Free Korea that had a posting category entitled "the end of an alliance," which highlighted the eventual parting of ways between the ROK and the US.

(This despite Roh Moohyun's political capital-eroding decision to send what was the third largest contingent of troops to the highly unpopular Iraq War (even if they saw little fighting) and his efforts to push for a free-trade agreement that would bring South Korea closer to the United States economically, while also giving the green light for a naval base on Cheju-do that would make South Korea's military, particularly its navy, a more effective military partner with the United States.)

But Roh Moohyun and George W. Bush were, to some degree, ham-handed political figures without a sense of the big picture, who had stumbled into the Blue and White Houses almost by accident and happenstance. Where there was a great deal of common ground, Roh's efforts to also make nice with China and North Korea riled a Washington that had a philosophy that "you're either for us or you're against us" on all matters.

When both presidents, and their respective parties, were gone from their respective color houses, we got pragmatic heads-of-state who saw the need and opportunity to bring their countries back in line with each other. Both see China as a potential threat that is easier to mitigate by closing ranks, both see North Korea's brinkmanship as something that needs to be addressed head on, and both worked hard to do what their predecessors could not do with the aforementioned FTA.

The result of this and other actions and factors is that Seoul is now seen by Obama's Washington as the reliable ally that Tokyo once was (the Japanese leadership seems to be going through it's own Roh Moohyun phase). I think this will likely continue even if we see a Romney or Santorum administration, regardless of who is elected in South Korea at the end of this year (since both left and right have growing concerns about China and even North Korea).

That is a very long introduction to a short article on what's in the title up there. Despite three decades of its military and political patron having an extremely adversarial relationship with Iran, South Korea has continually engaged Iran economically, both as an exporter of electronic goods, cars, heavy machinery, and even construction, and as an importer of oil.

The irony is palpable if you take the short jaunt from the US military's Yongsan Garrison, across the river to Teheran-no Boulevard, long one of the major streets cutting across Seoul's affluent south bank of the Han River.

It has come to a head with the Obama administration's aggressive diplomatic efforts to isolate Iran over its assumed nuclear weapons development, which is itself meant to preclude a military attack by Israel or even the United States. In short, Washington needs Tehran to feel the pain if it doesn't abide by its international agreements and put an end to its nuclear brinkmanship (dang, used that word twice now).

But South Korea, like neighboring Japan, is a prosperous country that is energy-poor. The disaster at Fukushima has meant a reduction in nuclear output in Japan that may carry over to South Korea, while putting pressure on the two countries to import more energy resources. For them, the pain of cutting off Iranian oil supplies is perhaps too great.

According to the Washington Post, the Obama administration seems to be getting South Korea's (and Japan's) predicament and may offer an exemption, but it hasn't so far:
South Korean officials said Saturday that they will continue working with the U.S. to reduce oil imports from Iran after President Barack Obama greenlighted potential sanctions against countries that continue to buy Iranian oil.

South Korea is one of several major importers of Iranian oil that have not received exemptions from the U.S. sanctions.

Obama announced Friday that he is plowing ahead with the potential sanctions, which could affect U.S. allies in Asia and Europe, as part of a deepening campaign to starve Iran of money for its disputed nuclear program.

The sanctions aim to further isolate Iran’s central bank, which processes nearly all of the Iran’s oil purchases, from the global economy. Obama’s move clears the way for the U.S. to penalize foreign financial institutions that do oil business with Iran by barring them from having a U.S.-based affiliate or doing business here.

Obama’s goal is to tighten the pressure on Iran, not allies, and already the administration exempted 10 European Union countries and Japan from the threat of sanctions because they cut their oil purchases from Iran. Other nations have about three months to significantly reduce such imports before sanctions would kick in.

Foreign Ministry officials in South Korea said Saturday that they expect to reach an agreement with Washington by late June on reducing oil imports from Iran. The officials declined to be named because discussions were still under way.

South Korea has already restricted financial dealings with more than 200 groups and individuals with suspected links to Iran’s nuclear program. Seoul relies on Iran for up to 10 percent of its oil.
Like it or not, Washington tends to look at Europe and Asia separately, so with Japan having already received an exemption, it looks like South Korea can, too, but the cuts will be painful. I haven't had to fill up the Kia with gas lately, but I suspect this isn't helping keep energy prices down lately.

And over here, we're feeling the pinch with gas prices as well. Hawaii, as many of you may be aware, routinely has the highest gas prices in the country, so it is a collective pain we're all feeling. Will South Koreans feel the need to join the American effort to curb Iran's nuclear ambitions? Were enough people paying attention to the recent summit in Seoul about that very issue?

Hopefully the ROK leadership will stay focused on that issue no matter who is in power come next February, but I imagine the left is torn a bit: on the one hand, supporting American efforts to aggressively fight nuclear proliferation seems like gross hypocrisy given the 1000+ nuclear weapons the US has in its arsenal (even if Obama is trying to work out a deal with Russia to reduce this further), while on the other hand, nukes are to leftists one of the worst things imaginable. Since even the most ardent leftist leaders in South Korea still look to Washington as a protective military ally and an economic partner, I'm guessing they'll fall in line.

But it's that feeling of "falling in line" amidst so much pain (been there, done that many times) that has the power to agitate the populace and erode the Seoul-Washington alliance at least a little on the edges.

Aloha Gas in Waikiki at $4.469 yesterday. I had lent my car to a friend and decided to walk to my doctor's appointment in Waikiki, passing this station, which is typical. Costco may be about 20¢ cheaper, but for the most part, we're at four and a half bucks per gallon here in the islands. And that has me feeling not a lot of aloha, but it's still way cheaper than what I've routinely paid in Seoul (but there I had a full time job or two). 

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Sunday, March 11, 2012

The US is really trying to get its allies on board with sanctions against Iran aimed at ending its possible nuclear weapons program. Secretary of State Hillary Clinton specifically cited South Korea in her plea to join the US effort:
The Obama administration said Friday it was helping South Korea and other nations look for new energy sources to wean themselves from Iranian oil so they can contribute to a U.S.-led effort to chip away at the $100 billion in oil revenues Tehran earned last year.

Secretary of State Hillary Rodham Clinton said the goals of U.S. sanctions against Iran are simple: to stop the flow of cash to Tehran and demonstrate global unity against the Islamic republic's nuclear program.

American legislation demands countries around the world cut their oil intake from Iran, but Asian countries that purchase the majority of Iranian oil are resisting severe changes that might hurt their economies.

"No country understands the threat of nuclear weapons from a neighbor better than" South Korea, Clinton said after a meeting at the State Department with South Korean Foreign Minister Kim Sung-hwan.

"We recognize the difficult decisions and even the sacrifices that we are asking from other countries in order to increase this pressure on Iran," she told reporters. "Reining in a dangerous government is not easy."

U.S. efforts to get Asian countries, allies and competitors alike, to cut their oil imports from Iran have been difficult. In 2011, Japan, South Korea, India and China accounted for 60 percent of Iran's oil sales.
South Korea and Japan have been seeking waivers for a US law on Iranian sanctions that goes into effect soon. Mrs Clinton also said China needs to stop repatriating North Korean refugees.

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Sunday, January 31, 2010

North Korean arms shipment seized in Thailand was bound for Iran

So says a confidential report the Thai government has sent to the UN, according to Reuters. Well, I guess if it's on the pages of Monster Island, it can't be that confidential now, can it?
The report to the Security Council's North Korea sanctions committee, seen by Reuters on Saturday, said the shipment included rockets, fuses, rocket launchers and rocket-propelled grenades.

The cargo plane departed from Pyongyang and was en route to Mehrabad airport in Tehran, the report said. The shipping firm was listed as Korea Mechanical Industry Co.

The movement of North Korean arms to Iran appears to have been an effort to violate U.N. sanctions against North Korea that was foiled by the Thai government, diplomats said. Although Iran is subject to separate U.N. sanctions because of its nuclear program, it is not forbidden to import arms.

Council diplomats said on condition of anonymity that the sanctions committee was expected to discuss the Thai report next month when it considers its latest quarterly report, due on Feb. 11.

The committee will probably send letters to Pyongyang and Tehran for details on the shipment, the Western diplomats added.
I can't wait to hear the denials from the theocrats in Tehran and Pyongyang.

UPDATE:
This story is now being carried by the New York Times.