EU Council Decision 2012/635/CFSP
The Standard P&I Club has issued Web Alert regarding the new measures from EU for Iranian sanctions as follows:
On 15 October the EU Council issued Decision 2012/635/CFSP: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:282:0058:0069:EN:PDF prohibiting financial transactions between the EU financial sector and Iranian banks, including their branches and subsidiaries outside Iran.
The Decision also bans the import, purchase or transport of Iranian natural gas and prohibits the provision of insurance services related to such trade.
It bans the sale, supply or transfer to Iran of graphite, and raw or semi-finished metals such as aluminium and steel which are relevant to Iran’s nuclear, military and ballistic missile programme and or to industries controlled by the Iranian Revolutionary Guards Corps (which are not explicitly listed). The EU Decision also bans the sale, supply or transfer to Iran of software for integrating industrial processes. These prohibitions apply whether or not such goods originate in the EU.
The Decision also prohibits the sale, supply or transfer to Iran of key naval equipment and technology for ship-building, maintenance or refit. The EU will list the items to be covered by this provision. Again this prohibition applies whether or not such goods originate in the EU. The Decision explicitly states that the prohibition shall be without prejudice to the supply of such naval equipment to non-Iranian owned/controlled ships that have been forced into an Iranian port or waters under force majeure.
In barring the supply of these goods, the Decision does not use the same language (“import, purchase or transport”) as that used with regards to Iranian natural gas. It may be argued that the absence of this language may mean that it is permissible to transport such goods. However this is likely to be in contravention to the spirit of the Decision and the EU and member states may adopt more restrictive interpretations and implementing regulations.
The EU Decision bars the construction or the participation in the construction of new oil tankers for Iran and the provision of technical or financial assistance. The provisions do not define what is meant by an “oil tanker” but again a wide interpretation can be anticipated. The Decision goes on to bar the provision of flagging and classification services including registration to Iranian oil tankers and cargo ships and prohibits the supply of ships designed for the transport or storage of oil and petrochemical products.
Further information and implementing regulations will be issued in due course coupled with details of exemptions and licensing arrangements.
EU Regulation (no 945/2012)
Also on 15 October the EU issue a fresh regulation (no 945/2012): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:282:0016:0022:EN:PDF which has direct and immediate effect. The regulation implements the additional asset freezing requirements under the above Decision. Further individuals and companies had been named and their assets will now be frozen. The list includes Iranian politicians, ministries (such as the Ministry of Energy and Ministry of Petroleum) and banks (including the Cooperative Development Bank and Trade Capital Bank in Belarus). The list also contains several oil and gas companies including the Iran Liquefied Natural Gas Co
Significantly the list also includes major state owned companies involved in the discovery and exploitation of oil and natural gas resources (including drilling entities such as the National Iranian Drilling Company (NIDC) and the North Drilling Company (NDC)) and those involved in refining and distribution (including the National Iranian Oil Refining and Distribution Company (NIORDC) and the National Iranian Tanker Company (NITC)).
The regulation applies to state owned and operated entities that provide financial resources to the government of Iran such as the National Iranian Oil Company (NIOC) and its subsidiaries based in London (National Iranian Oil Company (NIOC) International Affairs Ltd) and Singapore (National Iranian Oil Company (NIOC) Pte Ltd) and the National Iranian Gas Company (NIGC).
The regulation also freezes the assets of the Iranian Oil Terminals Company and trading companies such as Naftiran Intertrade Company (NICO) of Jersey and Naftiran Intertrade Company (Switzerland) and their subsidiaries (including Petropars International FZE, Petropars Ltd (PPL) and Petropars UK Limited).
Source: The Standard P&I Club