Trade With Iran:
Have They Sanctioned It? By Diane Galloway & Andrew Duckworth
IN RECENT MONTHS the world’s major regulatory regimes have acted to tighten sanctions against Iran with the aim of impeding the country’s nuclear programme. As a reflection of Iran’s energy based economy, the sanctions are specifically focussed on its oil and gas, transport, insurance and finance sectors. It is hoped that the new sanctions
imposed by the UN, the US, the EU and allied countries will diplomatically and economically isolate Iran and compel it to accept a nuclear deal. With the US’ allies now aligning
with the US position on sanctioning Iran, it is important all those involved in international trade are aware of the various sanctions regimes.
(c) Seeking to inhibit Iran’s access to the international financial system with particular focus on its banks which may be used to fund nuclear proliferation and/or associated activities.
Of most direct relevance and interest to those involved in
international trade is that the UN sanctions contain measures directed specifically at listed Iranian individuals and entities. Resolution 1929 added 41 new individuals and entities to the list including companies linked to the Islamic Revolutionary Guard and the defence industry, as well as banks and the national shipping line (IRISL). Pursuant to the Charter of the UN, all members of the UN are obligated to carry out the decisions of the Council.
United States of America Since Iran’s Islamic Revolution in 1979, the imposition of sanctions has played a central role in the US’ Iran policy. The current US sanctions regime against Iran is implemented through a number of Executive Orders and the Iranian Transactions Regulations.
Resolution 1929 was adopted by a majority vote of 12-2 in response to the proliferation risks posed by Iran’s nuclear programme
on June 9th
United Nations After months of negotiations, 2010 the UN Security
Council voted to impose what is now its fourth round of sanctions on Iran since 2006. Resolution 1929 was adopted by a majority vote of 12-2 (Turkey and Brazil) in response to the proliferation risks posed by Iran’s nuclear programme and Iran’s failure to cooperate with the International Atomic Energy Agency. Resolution 1929 expands existing sanctions by: (a) Prohibiting UN States from allowing Iran to invest in commercial activities involving uranium mining and related nuclear technologies;
(b) Requiring all UN States to prevent the supply, sale or transfer to Iran of certain military equipment, technology and systems; and
78 December 2010
Iranian Transactions Regulations (ITR) On June 14th
2010, the US Office of
Foreign Assets Control (OFAC) issued amendments to the existing ITR. In general terms, the ITR prohibit US
persons (i.e. US companies, their affiliates and US nationals) wherever located from engaging in or facilitating any unlicensed transaction involving (a) Iranian products, (b) exports to Iran or (c) the Government of Iran. The amendments to the ITR identified a further 22 petroleum, petrochemical and insurance companies that are now deemed to be ‘the Government of Iran’. OFAC has also recently added a number of Iranian-linked
entities to its list of Specifically Designated Nationals (SDN List) with whom US persons are prohibited from doing business. The new additions are primarily focussed upon the fleet of IRISL as a result of reports that IRISL is alleged to have changed the names of vessels and moved them into ownership and management of front companies in order to evade US sanctions.
The Iran Sanctions Act (ISA) and the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA) On July 1st
2010, CISADA was signed into law by the US
President. CISADA amended ISA to attempt to address those activities not originally sanctionable under ISA including transactions involving Iran’s petroleum industry and Iranian origin goods. Under CISADA, the President is required to impose a minimum of 3 or more of a possible 9 sanctions upon persons who:
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