What looks like Japan’s principled stance against the Iranian nuclear program turns out tobe rather lame.

Japan’s new sanctions include a freeze on the assets of scores of groups and individuals linked to the country’s nuclear programme.

They ban the provision of insurance or reinsurance services to Iran and bar Japanese financial institutions from buying bonds issued by Iran’s central bank.

The new ban on financial activity with 15 designated Iranian banks that could contribute to nuclear activities could affect some Japanese banks, analysts said.

Toyota Motor Corp has suspended motor vehicle exports to the country indefinitely since June.

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Yet, the sanctions don’t touch oil imports to Japan, or existing investments in Iran.

In early August, Robert Einhorn, the US state department special adviser for non-proliferation and arms control said in Tokyo: “Japan imports a lot of oil from Iran, but the steps we are asking Japan to take would not interfere in any way with Japan’s energy security, its imports of oil from Iran.”

It remains to be seen how much pain an oil-dependent economy can inflict upon its enabler. Furthermore, Beijing is set to benefit from the investment vacuum.

The Kyodo news agency quoted Katsuya Okada, foreign minister, as saying Tokyo would urge other nations to refrain from taking advantage of the tighter sanctions on Iran – an apparent reference to China.

Beijing has opposed what it sees as overly sweeping steps against Iran, although China did support the UN sanctions resolution passed in June.

Last year, a Chinese state oil major signed a $2bn (€1.6bn, £1.3bn) agreement to help develop Iran’s Azadegan oilfield. This followed an earlier drastic reduction of the stake held in the field by Inpex, a Japanese oil and gas company.

Japan’s new measures were not expected to affect Inpex’s remaining 10 per cent Azadegan stake, Reuters news agency quoted Masayuki Naoshima, the economy, trade and industry minister, as saying.

Robert Einhorn, US special adviser for non-proliferation and arms control, warned China last month against “backfilling” or taking advantage of opportunities created by the “responsible self-restraint” of countries leading the way in sanctions against Iran.

“We want China to be a responsible stakeholder in the international system, and that means co-operating with UN Security Council resolutions,” Mr Einhorn said during a trip to South Korea.

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Filed under: Business/Economy, East Asia, Energy, Iran, USA Tagged: banks, china, japan, oil, prc, robert einhorn, sanctions