Japan may cut Iran oil imports by 20 percent to avoid US sanctions - which is different from cutting off all Iranian oil imports - wonder what Greece , Spain and Italy think of this ?

http://ajw.asahi.com/article/behind_news/politics/AJ201203050078

Japan and the United States are close to an agreement on cuts in Japanese imports of Iranian oil that will allow Tokyo to avoid U.S. sanctions, and may conclude a deal this month, Japanese Foreign Minister Koichiro Genba told Reuters on March 5.

But Genba said the two sides might not make public the size of the cuts because of the possible impact on markets.

"We are in the final stage, but are still making final adjustments (to an agreement)," Genba said in an interview. "Certainly, we will reduce (the imports), but because the concrete figures would influence the market, I am thinking at this point that it would be better not to announce them."

Japan's government has previously said the country would likely be spared from the U.S. sanctions, aimed at pushing Tehran to curb its nuclear ambitions, and has cut its Iranian oil imports by 40 percent over the past five years.

Japan's crude oil imports from Iran fell a sharp 22.5 percent in January from a year earlier. Imports from Iran, the world's fifth-largest oil exporter, accounted for 8.8 percent of Japan's total oil imports in 2011.

According to a report coming from Japan, Japan could cut its Iranian oil imports by a more-than-expected 20 percent in its drive to win a U.S. exemption.

The pressure to cut Iranian imports comes as Japan is boosting overall fossil fuel imports in the wake of the nuclear disaster at Tokyo Electric Power Co's (TEPCO) Fukushima nuclear plant last March. All but two of the country's 54 nuclear reactors are off-line, mostly for checks and maintenance.

About 85 percent of Japan's oil imports and 20 percent of its LNG imports travel through the Strait of Hormuz, Genba noted, but said that if Iran blockaded the crucial shipping lane, Japan could keep the economic impact on the country to a minimum because it has ample reserves.

"Even in the worst case, naturally we would consider (measures) including the release of reserves to keep the impact on the Japanese economy and people living in Japan to a minimum," he said. Blocking the Strait would not be in Iran's economic interests and would probably not last long, he added.

Genba, 47, who took over as foreign minister last September, declined to say whether Japan would consider dispatching its navy, whose overseas deployment is constrained by the pacifist constitution, in the event the Strait of Hormuz was closed.

"It is not appropriate to say anything very concrete at this stage. Of course, we are considering our options based on various possible scenarios," he said. "At this stage we are not in that situation and if that situation arises, I want to respond appropriately."