Few Points on Iran Sanctions
- In the event that a non-U.S, non-Iranian person is owed payment after the conclusion of the wind-down period on August 6, 2018, or November 4, 2018, as applicable, for goods or services fully provided or delivered to an Iranian counterparty prior to August 6, 2018, 5 or November 4, 2018, as applicable, pursuant to a written contract or written agreement entered into prior to May 8, 2018, and such activities were consistent with U.S. sanctions in effect at the time of delivery or provision, the U.S. government would allow the non-U.S., non-Iranian person to receive payment for those goods or services according to the terms of the written contract or written agreement.
- The provision or delivery of additional goods or services and/or the extension of additional loans or credits to an Iranian counterparty after August 6, 2018, or November 4, 2018, as applicable, including pursuant to written contracts or written agreements entered into prior to May 8, 2018, may result in the imposition of U.S. sanctions unless such activities are exempt from regulation, authorized by OFAC, or otherwise not sanctionable.
- Apply for Exemption License for Crude Oil Purchases: The State Department will evaluate and make determinations with respect to significant reduction exceptions provided for in section 1245(d)(4)(D) of the NDAA at the end of the 180-day wind-down period. Countries seeking such exceptions are advised to reduce their volume of crude oil purchases from Iran during this wind-down period. Consistent with past practice, the Secretary of State, in consultation with the Secretary of the Treasury, the Secretary of Energy, and the Director of National Intelligence, would make such determinations following a process of rigorous due diligence.
- From a European perspective, sustaining economic exchange with Iran is not about advancing economic gains but rather about consolidating an agreement which is driven by pragmatic security concerns. The shared elements are clear—Iranian and European policymakers alike are foremost motivated by a need to salvage the JCPOA and thereby protect their economic sovereignty and autonomy in international relations.
To support these ends, Parties negotiate on a new banking architecture that must be at the heart of Europe’s package to protect Europe-Iran economic ties. This banking architecture should be designed not to evade US sanctions, but to ensure that those companies that can operate in compliance with U.S. secondary sanctions have access to the necessary banking services.
The architecture should have two main elements:
- It should be centered on “gateway banks” – financial institutions which can serve as intermediaries between major Iranian and European commercial banks.
- It should be overseen by an “EU-OFAC,” a regulatory authority modeled on the U.S. Treasury Office of Foreign Assets Control, but with a philosophy of operation geared towards facilitation of trade rather than restriction.
- The integration of EU and U.S. makes it very difficult to open this new banking structure. However, authorities of Iran Foreign Ministry expressed a few days ago that most of negotiations have been done and they are closed to an agreement in this regard.
- Iran new sanctions brings opportunity for some people and some countries. For example, Chinese companies faced with strong competitors during 2016 and 2017 and by leaving European companies, they can get more projects in Iran.
- Some believe sanctions have positive effects such as encouraging Iranian manufacturers to become independent and use Iranian material for their production more than before.
- Iran Government may provide some relaxations for the projects to decrease the effects of sanctions. Some tax holidays for the projects and ease procedure for getting work licenses.
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