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EU oil sanctions on Iran to take effect Sunday

Monday - 6/25/2012, 12:01pm  ET

LUXEMBOURG (AP) - The European Union says its embargo on Iranian crude oil _ imposed due to Tehran's disputed nuclear program _ will take effect as planned Sunday.

A statement on Monday said that all contracts for importing Iranian oil will have to be terminated from that date. Also, European companies will no longer be involved in insuring Iranian oil.

EU nations imported about 14 percent of Iran's oil before the bloc decided in January to embargo further purchases.

Oil is a major source of revenue for Iran, which insists that its nuclear program is peaceful and not aimed at making weapons as suspected by Western nations.

Sanctions levied by the U.S. have already cut exports of Iranian crude from about 2.5 million barrels a day last year to between 1.2 and 1.8 million barrels now, according to estimates by U.S. officials.

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