TRADE RESTRICTIONS ON IRAN
It is the Chamber's intention to help Members comply with trade restrictions on Iran.
The following information is intended to assist UK companies and persons in reviewing their business with Iran so that they can comply with relevant trade restrictions and sanctions. It is not a comprehensive guide, readers may not rely on it, rather they should take their own advice regarding compliance with law and regulation.
On 9th June 2010 the UN Security Council passed Resolution No. 1929 extending sanctions on Iran - click here to view the full text.
On 26th July 2010 an EU Council decision introduced further sanctions on Iran:- click to view conclusions, click to view decision or click to view mini-regulation inc. asset freezes.
A summary of recent Iran sanctions developments in the UN, USA and EU is provided by Whale Rock Legal Limited: Click here to view PDF.
There are principally four groups of trade restrictions on Iran relevant to British business with Iran. Sanctions imposed by the USA, trade restrictions imposed by the United Nations,the European Union and the export licensing regime of the UK.
Trade restrictions were first imposed by the USA in 1987. They were extended in 1995 when US involvement with petroleum development in Iran was prohibited. In 1997 virtually all trade and investment activities with Iran by US persons, wherever located, was prohibited. The sanctions are administered by the US Treasury Department’s Office of Foreign Assets Control (OFAC). US sanctions may be relevant to UK companies where they are subsidiaries of US companies, or they have American directors or they have significant operations in the USA. See here to read up-to-date information from the US Treasury Department.
The United Nations Security Council Resolution (UNSCR 1737) was approved in 23rd December 2006. Its purpose is to prevent supplies to Iran of materials, goods, equipment and technology which could contribute to Iran’s enrichment of uranium or heavy water related activities or to the development of nuclear weapon delivery systems. Please click here to view UNSCR 1737. On 24th March 2007, UNSCR 1747 was adopted which outlined measures targeting Iran's arms exports, Bank Sepah and the Revolutionary Guards organisation. Please enter here to view UNSCR 1747. On 3rd March 2008, UNSCR 1803 was adopted. Please Click here to view UNSCR 1803. On 27th September 2008 UNSCR 1835 re-affirmed demands that Iran stops enriching uranium. Click here to review UNSCR 1835.
Trade restrictions imposed by the EU are of more recent date: they are the Commission Regulation EC No 219/2008 and Council Decision 2008/475/EC and the Support Notice.
UK export licensing is designed to prevent the proliferation of weapons of mass destruction (WMD) and missiles for their delivery. In order to limited the burden on those engaged in legitimate trade, licensing relates to items which have a dual use: that is could be used in the construction of WMDs. Information on the end user is relevant to the granting of a licence. The regime is administered by the Export Control Organisation of the Department of Trade and Industry. Click here to link for further information.
On 12th October 2009, HM treasury issued the Finacial Restrictions (Iran) Order 2009, which prohibits UK financial and credit institutions (including insurers) from dealing with Bank Mellat and IRISL and their branches. For more information please follow this link.
19th March 2010 - Iran and Pakistan sign $7.6b gas pipeline deal
Iran and Pakistan have signed a deal paving the way for the construction of a much-delayed pipeline pumping Iranian natural gas to the energy-starved South Asian country, officials said on Wednesday.
The $7.6 billion project is crucial for Pakistan to avert a growing energy crisis already causing severe electricity shortages in the country of about 170 million.
Pakistani Petroleum and Natural Resources Minister Naveed Qmar hailed the signing of the deal in Turkey on Tuesday as an “historic achievement.”
“It’s a milestone towards meeting energy needs of the country,” a Pakistani government statement quoted Qamar as saying.
The pipeline will connect Iran’s South Pars gas field with Pakistan’s southern Baluchistan and Sindh provinces.
Under the deal, 750 million cubic feet of gas will be pumped to Pakistan daily from Iran by mid-2015.
Dubbed the “peace pipeline,” the project has been planned since the 1990s and originally would have extended from Pakistan to India.
However, India has been reluctant to join the project due to political tensions with Pakistan.
Under the deal, Pakistan is allowed to charge a transit fee if the proposed pipeline is eventually extended to India.
Iran has the world’s second-largest gas reserves after Russia.
From Tehran Times
16th March 2010 - Iran-Pakistan gas deal operational by Friday
Tehran and Islamabad will sign the operating contract of gas export from Iran to Pakistan by Friday, the Iranian deputy oil minister said here on Tuesday.
The Mehr News Agency quoted Hojjatollah Ghanimifard as saying that the contract will be inked in Turkey, adding, Pakistan has declared its readiness to transit gas to India.
India was also a part of the proposed Iran-Pakistan-India (IPI) pipeline, but walked out of the 2,775 km pipeline project mainly due to the hefty transit fee demanded by Islamabad.
The negotiations have been going on for many years involving Iran, Pakistan and India. Iran’s enormous gas reserves are ideally suited to supply massive amounts of gas to both Pakistan and India on long-term basis, thus helping ease the energy requirements of the two giant developing nations.
Iran, Pakistan, and India conceptualized the Peace Pipeline project in 1990s, to help boost peace and security in the region.
Negotiations over the project were initiated in 1994 between the three countries but there were obstacles to closing the three-way deal due to tension between India and Pakistan.
Due to the tense India-Pakistan relations, New Delhi stepped back from the later stages of negotiations, although it has never formally withdrawn from the project.
During the talks, the Indian officials had asked Iran to sort out a number of issues, such as the security of the pipeline and the gas price formula.
India didn’t participate in the last several rounds of talks, but Iran repeatedly encouraged India to rejoin the process.
Iran holds world’s second-largest gas reserves after Russia.
From MEHR News
Israel Would Consider Strike on Iran - 7th December 2007
Please click here to read the above article published in USA Today.
IAEA debates Iran nuclear report
The board of the UN's nuclear watchdog, the IAEA, meets to discuss its latest report on Iran's nuclear programme. Click here to read the full article in the BBC website.
NEWS FEEDS
For real time economic, political and cultural news on Iran please click on the official news agency of the Islamic republic. www.irna.com or www.mehr.com.