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Restrictive Measures Against Iran

Article Date: 02 February 2011

On 27 October 2010 Council Regulation (EU) 961/2010 on restrictive measures against Iran was published in the Official Journal of the European Union (O.J. L281, 27.10.2010, p1) and came into force on that day. This repeals Regulation (EC) 423/2007.

The Regulation implements a number of measures outlined in Council Decision 2010/413/CFSP of 26 July 2010 that are necessary to comply with UN Security Council Resolution 1929 (2010) as well as imposing additional restrictive measures as requested by the European Council in its Declaration of 17 June 2010.

These restrictive measures comprised the following:

  • Rrestrictions on trade in dual-use goods and technology equipment which might be used for internal repression.
  • Restrictions on trade in key equipment and technology for the Iranian oil and gas industry.
  • Restrictions on transfers of funds to and from Iran.
  • Restrictions concerning the Iranian banking sector.
  • Freezing of assets or funds to or from designated entities and restrictions on providing certain services to Iranian ships and cargo aircraft. 

Full text of the Regulation can be found on the following link; Official Journal of the European Union

Supplementary information on the provision of Economic Resources Asset freezing and economic resources

Articles 16-20 of the Regulation detail asset freezing measures, Annexes VII and VIII contain lists of designated entities that are covered by these asset freezing sanctions. As part of these financial sanctions, there is also a prohibition on providing economic resources to those designated entities detailed.

Economic resources are defined within the Regulation as ‘assets of every kind, whether tangible or intangible, moveable or immovable, which are not funds, but which may be used to obtain funds, goods or services’.

Further information on asset freezing sanctions can be found on the HM Treasury web site; HM Treasury  web pages on sanctions on Iran

If you are aware that a designated entity is contained within your supply chain, the supply of goods may be classified as the provision of economic resources and subject to licence requirements by HM Treasury, in addition to any existing export licensing requirements from the Department of Innovation & Skills Export Control Organisation (ECO).

Please be aware that these Articles cover the supply of goods that may have already been granted a licence by the EO or you have been advised an ECO export licence is not required for the goods.

The general provisions concerning export of goods to Iran contained within the Regulation, are separate to the specific prohibition under Article 16 that apply to named entities contained within Annexes VII and VIII of the Regulation.

It is a breach of the prohibition in Article 16(3) of the Regulation if any economic resources, whether their export is capable of being licensed under the separate ECO export licence regime or not, are made available to a designated entity without an HM Treasury licence.

 

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