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.

In November 2011 further UK, US and EU Sanctions were introduced, click here for further details.

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.

March 7th 2011 - 170 industrial, mining projects come on stream in Fars Province

Iran inaugurated 170 industrial and mining projects in the southern province of Fars on Monday.
The projects were completed at a cost of over 5 trillion rials (about $484 million) and will create over 3,700 job opportunities.

President Mahmoud Ahmadinejad attended the inauguration ceremony for the projects, which was held in Shiraz, the capital of Fars Province, Islamic Republic of Iran Broadcasting reported.

Construction, chemical production, food industry, textile manufacturing, electricity generation, car manufacturing, and packaging industry projects were some of the projects that came on stream.

President Ahmadinejad also inaugurated the second Industry and Mine Festival at the ceremony.

The one-day festival was organized to display the industrial and mining potential of the country.

Two thirds of the National Development Fund’s credits will be allocated to the industrial and agricultural sectors, the president said.

It is projected that the National Development Fund’s reserves will reach $30 billion by the end of the next Iranian calendar year (March 20, 2012), he added.

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.