On October 27, 2010, the EU published the Regulation 961/2010 to implement the Council Decision of 26 July 2010 concerning restrictive measures against Iran setting out existing EU sanctions, and also imposing new EU sanctions. The Regulation has immediate effect from 27th October 2010 and does not require implementing legislation to be enacted by the individual EU Member States. Key provisions of Regulation 961/2010 include:
The regulation applies:
(a) within the territory of the Union, including its airspace;
(b) on board any aircraft or any vessel under the jurisdiction of a Member State;
(c) to any person inside or outside the territory of the Union who is a national of a Member State;
(d) to any legal person, entity or body which is incorporated or constituted under the law of a Member State;
(e) to any legal person, entity or body in respect of any business done in whole or in part within the Union.
- To sell, supply, transfer or export key equipment or technology listed in Annex VI, directly or indirectly, to any Iranian person, entity or body or for use in, Iran. (art. 8)
- To provide, directly or indirectly, technical assistance or brokering services, financing or financial assistance related to the key equipment and technology listed in Annex VI, or related to the provision, manufacture, maintenance and use of goods listed in Annex VI, to any Iranian person, entity or body or for use in Iran; and prohibition to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred in this paragraph (art. 9)
- To provide any financial loan or credit to any Iranian person, body or entity engaged in the exploration or production of crude oil and natural gas, the refining of fuels or the liquefaction of natural gas (the formation of a JV with or acquisition or extension of a participation in any such person, body or entity are also prohibited);
- To participate, knowingly and intentionally, in activities, the object or effect of which is to circumvent the prohibitions referred to in this paragraph;
- To establish cooperation with an Iranian person, entity or body engaged in the transmission of natural gas.
Restriction on transfer of funds:
Art 21 provides that:
(a) transfer of funds to and from an Iranian person, entity or body due on transactions regarding foodstuffs, healthcare, medical equipment, or for humanitarian purposes shall be carried out without any prior authorisation. However the transfer shall be notified in advance in writing to the competent authorities of the Member States, if above EUR 10 000 or equivalents;
(b) any other transfer below EUR 40 000 shall be carried out without any prior authorisation. The transfer shall be notified in advance in writing to the competent authorities of the Member States, if above EUR 10 000 or equivalent;
(c) any other transfer of or above EUR 40 000 or equivalent shall require a prior authorisation of the competent authorities of the Member State. The competent authority for the UK is HM Treasury.
Art 26 provides the following prohibitions in paragraph 1:
(a) to provide insurance or re-insurance to:
(i) Iran or its Government, and its public bodies, corporations and agencies;
(ii) an Iranian person, entity or body other than a natural person; or
(iii) a natural person or a legal person, entity or body when acting on behalf or at the direction of a legal person, entity or body referred to in (i) or (ii).
(b) to participate, knowingly and intentionally, in activities, the object or effect of which is to circumvent the prohibition in point (a).
However the Regulation provides that the prohibition provided Points (i) and (ii) of paragraph 1(a) shall not apply to the provision of compulsory or third party insurance to Iranian persons, entities or bodies based in the Union.
Furthermore the Regulation clarifies that the insurance restriction does not prevent the provision of insurance or re-insurance to the owner of a vessel chartered by an Iranian person which is not listed in Annexes VII or VIII of the Regulation; and that that direction for the purposes of docking, loading, unloading or safe transit of a vessel in Iranian waters is not considered as “to act at the direction of an Iranian person…” for the purpose of Point (iii) of paragraph 1(a).
Article 26 also prohibits the extension or renewal of insurance and re-insurance agreements concluded before the entry into force of this Regulation, but does not prohibit compliance with agreements concluded before that date.
Restriction on transport
Art 27 provides restrictions on transport, in particular the requirement on declaration of cargo and the submission pre-arrival/pre-departure information of any goods to the competent custom authorities from/to a Member State to/from Iran.