CICG Ordre des Avocats de Genève 17 March 2016
Sanctions regime prior to Implementation Day Various International, multilateral, regional and national nuclear sanction regimes were imposed on Iran: UN : Security Council resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), and 1929 (2010) EU: Council Decision 2010/413 and Council Regulation 2012/267 U.S.: - IranThreat Reduction and Syria Human Rights Act of 2012 (TRA), - Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2013, - National Defense Authorisation act for FiscalYear 2012, - Iran Freedom and Counter-proliferation Act of 2012 (IFCA) and - Iran Sanctions Act 1996 (ISA) - Executive Orders 13574, 13590, 13622, and 13645, and sections 5-7 and 15 of Executive Order 13628 Other Countries : Norway, Japan, Switzerland, Canada, Australia, South Korea etc.
Target of the Sanctions • Activities Example: Import of crude oil into Europe, import and export of oil products to and from Iran, banking transactions, insurance, transport of oil and petrochemical products etc • Individuals and entities
Background: JPOA and JCPOA In 2013, Iran and the P5+1 countries (China, France, Russia, the United Kingdom, the United States and Germany) agreed on the JPOA that was implemented in 2014 and which gave rise to limited sanctions relief under EU sanctions (Regulation 42/2014) and a similar suspension of US secondary sanctions. On 14 July 2015, Iran and the P5+1 agreed on the JCPOA that provided for a comprehensive sanction relief upon verification by the IAEA that Iran has complied with the nuclear-related commitments it had undertaken in the JCPOA. This was achieved on 16 January 2016 (”Implementation Day”) .
Joint Comprehensive Plan of Action Vienna, 14 July 2015 JCPOA, Main text, Para. 19 JCPOA, Main Text, Para. 21 The EU will terminate all provisions of the EU The United States will cease the application, Regulation, as subsequently amended, and will continue to do so, in accordance with implementing all nuclear-related economic and this JCPOA of the sanctions specified in Annex financial sanctions, including related II to take effect simultaneously with the IAEA- designations, simultaneously with the IAEA- verified implementation of the agreed nuclear verified implementation of agreed nuclear- related measures by Iran as specified in Annex related measures by Iran as specified in V. Such sanctions cover the following areas as Annex V, which cover all sanctions and described in Annex II: restrictive measures in the following areas, as described in Annex II:
Joint Comprehensive Plan of Action Vienna, 14 July 2015 i. Transfers of funds between EU persons i. Financial and banking transactions with and entities, including financial Iranian banks and financial institutions institutions, and Iranian persons and as specified in Annex II, including the entities, including financial institutions; Central Bank of Iran and specified individuals and entities identified as ii. Banking activities, including the Government of Iran by the Office of establishment of new correspondent Foreign Assets Control on the Specially banking relationships and the opening Designated Nationals and Blocked of new branches and subsidiaries of Persons List (SDN List), as set out in Iranian banks in the territories of EU Attachment 3 to Annex II (including the Member States; opening and maintenance of correspondent and payable through- accounts at non-U.S. financial institutions, investments, foreign exchange transactions and letters of credit); ii. Transactions in Iranian Rial;
Joint Comprehensive Plan of Action Vienna, 14 July 2015 iii. Provision of insurance and reinsurance; iii. Provision of U.S. banknotes to the Government of Iran; iv. Supply of specialized financial messaging services, including SWIFT, for persons iv. Bilateral trade limitations on Iranian and entities set out in Attachment 1 to revenues abroad, including limitations Annex II, including the Central Bank of on their transfer; Iran and Iranian financial institutions; v. Financial support for trade with Iran v. Purchase, subscription to, or facilitation (export credit, guarantees or insurance); of the issuance of Iranian sovereign debt, including governmental bonds; vi. Commitments for grants, financial vi. Financial messaging services to the assistance and concessional loans to the Central Bank of Iran and Iranian Government of Iran; financial institutions set out in Attachment 3 to Annex II; vii. Transactions in public or public- vii. Underwriting services, insurance, or guaranteed bonds; reinsurance;
Joint Comprehensive Plan of Action Vienna, 14 July 2015 viii. Import and transport of Iranian oil, viii. Efforts to reduce Iran’s crude oil sales; petroleum products, gas and petrochemical products; ix. Investment, including participation in ix. Export of key equipment or technology joint ventures, goods, services, for the oil, gas and petrochemical information, technology and technical sectors; expertise and support for Iran's oil, gas and petrochemical sectors; x. Purchase, acquisition, sale, x. Investment in the oil, gas and transportation or marketing of petrochemical sectors; petroleum, petrochemical products and natural gas from Iran; xi. Export of key naval equipment and xi. Export, sale or provision of refined technology; petroleum products and petrochemical products to Iran; xii. Design and construction of cargo vessels and oil tankers; xii. Transactions with Iran's energy sector;
Joint Comprehensive Plan of Action Vienna, 14 July 2015 xiii. Provision of flagging and classification xiii. Transactions with Iran’s shipping and services; shipbuilding sectors and port operators; xiv. Access to EU airports of Iranian cargo flights; xiv. Trade in gold and other precious metals; xv. Export of gold, precious metals and xv. Trade with Iran in graphite, raw or semi- diamonds; finished metals such as aluminum and steel, coal, and software for integrating industrial processes; xvi. Delivery of Iranian banknotes and xvi. Sale, supply or transfer of goods and coinage; services used in connection with Iran’s automotive sector; xvii. Export of graphite, raw or semi- finished metals such as aluminum and xvii. Sanctions on associated services for steel, and export or software for each of the categories above; integrating industrial processes;
Joint Comprehensive Plan of Action Vienna, 14 July 2015 xviii. Designation of persons, entities and xviii. Remove individuals and entities set out in Attachment 3 to Annex II from the bodies (asset freeze and visa ban) set SDN List, the Foreign Sanctions Evaders out in Attachment 1 to Annex II; and List, and/or the Non-SDN Iran Sanctions Act List; and xix. Associated services for each of the xix. Terminate Executive Orders 13574, categories above. 13590, 13622, and 13645, and Sections 5 – 7 and 15 of Executive Order 13628.
EU Information Note and U.S. Guidance on Implementation day On Implementation Day, the European Union published an Implementation Note in accordance with its commitments contained in the JCPOA. The U.S Government also published a Guidance and a list of Frequently Asked Questions relating to the lifting of sanctions.
EU Sanction Lifting Financial, banking and insurance measures Transfers of funds between EU persons, entities or bodies and non-listed Iranian persons, and entities or bodies, including Iranian financial and credit institutions are permitted requirements for authorisation or notification of transfers of funds are no longer applicable. Banking activities, such as the establishment of new correspondent banking relationships and the opening of branches, subsidiaries or representative offices of non-listed Iranian banks in Member States are permitted.
EU Sanction Lifting Financial, banking and insurance measures The supply of specialized financial messaging services, including SWIFT, is allowed for Iranian natural or legal persons, entities or bodies is not unlawful anymore. The provision of financial support for trade with Iran such as export credit, guarantees or insurance is permitted. The provision of grants, financial assistance and concessional loans to the Government of Iran is allowed.
EU Sanction Lifting Oil, gas and petrochemical sectors Import, purchase, swap and transport of crude oil and petroleum products, gas and petrochemical products from Iran is allowed. EU persons are able to export equipment or technology, and provide technical assistance used in the sectors of the oil, gas and petrochemical industries in Iran. Investing in the Iranian oil, gas and petrochemical sectors, by the granting of any financial loan or credit to any Iranian person that is engaged in the oil, gas and petrochemical sectors in Iran or outside Iran is permitted.
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