Sanctions Update - Iran: EU extends sanctions relief

Members are advised that confirmation has been received from the US government and from the EU Council that they have extended until 30th June 2015 the suspension of restrictive measures specified in the Joint Plan of Action agreed by E3/EU+3 and Iran on 24th November 2013.

While the remainder of the restrictive measures against Iran remain in place, the practical effect of both the European and US measures is "no change" in the sanctions regime of both jurisdictions in respect of Iran until June 2015.

The extension of the JPoA has not increased or reduced the easing of sanctions, and the easings are still limited to the areas identified in www.ukpandi.com/knowledge/article/freehill-hogan-mahar-client-alert-us-eases-sanctions-against-iran-129743/. There are a number of points to remember:

1. With the exception of civil aviation activities and the humanitarian channel, the easing of sanctions does not apply to U.S. persons or to any foreign entity owned or controlled by a U.S. person.
2. The relief granted applies only to activities taking place exclusively during the six-month period beginning 20th January 2014, and ending 30th June 2015 (the "JPoA period").
3. The relief granted may be revoked by the U.S. authorities if Iran does not meet its commitments under the JPoA.
4. The U.S. authorities retain the authority to impose sanctions:
   (i) For activities that occurred prior to 20th January 2014;
   (ii) For activities that occur during the six-month period of sanction relief if those activities are materially inconsistent with the sanctions relief prescribed under the JPoA; and   
   (iii) For violations of all other U.S. sanctions other than those where some relief has been specifically granted.
5. The relief does not permit transactions with persons or entities on the U.S. Specially Designated Nationals list, except for limited and specific exceptions. 
6. All other U.S. sanctions, other than those which have been eased pursuant to the JPoA, remain in effect and will be enforced. In their 25th November 2014 FAQs on the continuing JPoA sanctions relief, the U.S. Department of the Treasury cautions:

"The U.S will continue to vigorously enforce our sanctions against Iran that are not subject to the limited relief provided pursuant to the JPOA, including by taking action against those who seek to evade or circumvent our sanctions. The USG [U.S. Government] also retains the authority to revoke this limited sanctions relief at any time if Iran fails to meet its commitments under the JPoA."

New FAQs have been issued. Both the Guidance and the FAQs are attached and can be accessed at the OFAC website.

Also attached is the Second Amended Statement of Licensing Policy On Activities Related To The Safety Of Iran's Civil Aviation Industry. A copy of the Council Decision 204/829/CSFP is available here.