Short of military force, trade sanctions are the most powerful and effective weapon in the armoury for international bodies such as the United Nations and for groups of states or individual states. Many sanctions are agreed at the UN but political differences can often mean that sanctions are also applied outside the UN framework. Iran is a case in point against which the US, Canada and the EU have all imposed stronger sanctions than those applied by the UN.
In general sanctions, as an instrument to apply pressure on other states and/or entities, are of growing significance to the international trading environment. We advise extensively on issues relating to sanctions and have set out below our recent client briefings relevant to this developing area.
Sanctions regimes against Eritrea
|An overview of sanctions regimes in place against Eritrea.|
EU increases pressure on Iran: Regulation banning import of Iranian petroleum now in force
|The wait is over for the Council Regulation which implements and gives effect to the remaining elements of Council Decision 2012/35/CFSP, which was published on 23 January 2012 and set out the EU’s intention to widen the existing sanctions against Iran. Council Regulation 267/2012 came into force upon its publication on 24 March 2012 and replaces Council Regulation 961/2010, which was the first major piece of EU legislation targeting Iran in response to the increased concerns relating to its nuclear programme, the most recent round of UN sanctions and the tightening of US sanctions.|
Sanctions against Syria
|The EU has recently agreed further restrictive measures against Syria in its Council Decision 2012/122/CFSP (the Decision). This reflects the concern about the deteriorating situation in Syria and comes further to Council Regulation No 36/2012 (effective as of 19 January 2012) which repealed and replaced earlier Regulation 442/2011 of 9 May 2011 in order to consolidate and enhance the existing sanctions against Syria.|
EU sanctions: Ban on the import of Iranian petroleum products to the EU
On 23 January 2012, the EU issued Council Decision 2012/35, which has been partly implemented by EU Regulations 54/2012 and 56/2012. These Regulations put into effect, respectively, the asset freezes and derogations contained in the Council Decision, including measures against the Central Bank of Iran and Bank Tejarat.
Although not yet fully implemented by Regulation (which is required in order for its provisions to be directly effective on individuals within the EU) the Council Decision is binding on EU Member States and therefore provides a good indication of the likely content of a further Regulation which is expected to be adopted in the next few weeks.
Once the further Regulation is published we will be able to assess its impact in more detail and with more certainty. We note, however, that any future Regulation is likely to prohibit the import, purchase or transport of Iranian crude oil, petroleum products and petrochemical products by EU entities and individuals. The ban is likely to be phased in over a period of time, with contracts entered into before 23 January 2012 still being capable of performance up to 1 July 2012.
Sanctions against Syria: Tightening the screw
|Recent months have seen growing unrest, violence and protest in Syria. The response of the West has been to step up the sanctions against Syria, in an attempt to bring down President Bashar al-Assad’s military campaign. This publication has been updated to include the changes to the sanctions regime by the EU Council in December 2011.|
Iran sanctions: UK cuts financial ties with Iranian banks
|On 21 November 2011, the Treasury responded to increased concerns regarding the Iranian nuclear programme by introducing even tougher sanctions against Iran, using its powers under the Counter-Terrorism Act 2008. The US, UK and Canada have implemented further sanctions against Iran and the European Union has agreed in principle to follow suit. This update focuses on the newly introduced UK sanctions.|
Sanctions against Libya: EU publishes implementing regulation
|This update focuses on the EU Council implementing regulation published on 16 June 2011 which added six port authorities in Libya to the list of “designated persons/entities”.|
Sanctions clauses and the insurance of Iranian entities
|Both Europe and the US are imposing strict economic sanctions against Iran and Iranian entities. Increasingly, the provision of insurance is being regarded as a prohibited activity, and insurers, reinsurers, brokers and traders need to be aware of and understand the implications.|
Sanctions against Libya and their impact on the global shipping industry
|The UN, EU and US have all recently introduced tighter trade and economic sanctions in respect of Libya. Shipowners and charterers therefore need to be aware of the key aspects of the sanctions against Libya, their impact on the global shipping industry and how they can ensure compliance.|
Phil Roche, The Baltic Exchange - Libyan sanctions
In view of the deteriorating Libyan situation, Baltic member firm Norton Rose has issued a note which considers the issues which may be relevant to those involved in the global shipping industry.
This article first appeared on http://www.balticexchange.com
Mowasalat - MENA transport updater
|Includes a section on Iranian sanctions and the Gulf.|
EU publishes Regulation implementing Iranian sanctions
|On 25 October 2010 the EU published a Council Regulation implementing new restrictive measures against Iran. This updater provides a summary of the key aspects of the Iran Regulation.|
The impact of sanctions law on financial institutions
|Financial institutions are increasingly focused on compliance with regulations whose subject matter ranges from macro-prudential requirements to the sale of retail investment products. Adding to this mix is an often overlooked but growing area of sanctions law. Sanctions law is an instrument used by government bodies to pursue foreign policy objectives. Where diplomatic efforts have failed and military force remains a last resort, such government bodies may apply pressure on other states and/or entities by means of trade and economic sanctions.|
Summary of Canadian economic sanctions
|An overview of economic sanctions issued by Canada.|