OIL: JAPANESE MAJOR TO CUT IMPORTS FROM IRAN

Tehran, March 16 (AKI) - Japan's largest oil company, Nippon Oil will cut its imports of crude oil from Iran, the company said on Thursday. The decision follows the UN nuclear watchdog's referral earlier this month of Iran's experimental uranium enrichment programme to the UN Security Council, company sources said. There has been no reaction so far from Tehran to Nippon Oil's announcement. China has already asked to increase its oil imports from Iran.

The cut will be effected "gradually," a Nippon Oil spokesman said; an initial cut of 15 percent seems likely, he stated. Japan should make up the future shortfall with imports from Russia, the spokesman said. Japan, which has allied itself with the US in the current standoff over Iran's nuclear programme, has described the country as "a high risk market." Iran currently supplies 14 percent of Japan's energy requirements. The US and other Western nations believe that Iran is seeking to build nuclear weapons, while Iran claims its nuclear ambitions are wholly peaceful.

Japanese companies consider their economic relations with Iran to be jeopardised by what they predict will be a complete breakdown in negotiations with the country over its
nuclear programme and possible international sanctions against the country.