On the 16th October an EU Council decision declared a prohibition on the transport of natural gas to Iran. The ban extends to the insurance and reinsurance of such transport so it will have impact on Members whether or not subject to EU jurisdictions.
When the Decision takes effect, the Club will be prohibited from providing cover to any Member in respect of carriage of natural gas originated in Iran.
The EU’s Council Decision 2012/635 which sets out these sanctions on Iran is binding on the Member States. However, an implementing Regulation is required to give it effect and make it binding on persons and entities within the EU. Past experience has indicated several months may elapse before the Regulation is published.
In addition to natural gas, certain minerals and metals regarded as relevant to Iran’s military infrastructure will be included on the list of prohibited products. Furthermore, th Decision has added new restrictions on classification societies and EU flag states, and the supply of vessels designed for the transport and storage of oil and petrochemical products. Tighter financial restrictions could also make it more difficult for the Club to settle local fees and or claims.