Kenya has cancelled plans to 
import crude oil from Iran following threats of sanctions, an official 
at the Kenyan energy ministry has said. The outline deal signed last 
month was to import about 4m tonnes of oil from the Iranian National Oil
 Company. But the US embassy in Nairobi had warned it was important to 
cut revenue to the Iranian government. The US and the European Union 
have just tightened sanctions on Iran over concerns about its nuclear 
programme. "Because of international pressure, we have withdrawn that 
understanding," AFP news agency quotes Patrick Nyoik, the energy 
ministry's permanent secretary, as saying.
On Sunday, a complete European Union oil
 embargo on Iran came into effect - in response to US legislation, which
 sanctions any entity that deals with Iran's Central Bank. "There are 
sanctions that are in place for people that are buying oil and products 
from Iran - there would be repercussions," outgoing US ambassador to 
Kenya Scott Gration warned earlier on Wednesday about Kenya's oil 
importation plans.
Last month, Kenya's only refinery said 
that it would start buying its own crude oil, Reuters news agency 
reported. According to Kenya's Business Daily newspaper, under the 
proposed contract Tehran had been offering Kenya an extended credit 
facility of 90 days.
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