Impact of Iran LNG sanctions
The European Union Council’s decision to prohibit the transport of natural gas from Iran extends to the insurance of such transport. It is likely to have an immediate impact on Members whether or not subject to EU jurisdictions.
When the decision takes effect, the Club will not provide cover to any Member in respect of carriage of natural gas originated in Iran.
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, the 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.
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.
This decision incorporates a list of 34 additional entities against whom sanctions will take immediate effect. The entities listed in this decision, and the corresponding HM Treasury notice, includes companies active in the production and trading of natural gas.
The financial sanctions already existing under earlier regulations update their list of sanctioned Iranian companies and individuals by way of the EU Council’s decisions. An implementing Regulation is not required to bring existing sanctions into effect against those newly named companies and individuals.
The decision and the annexed list of sanctioned entities can be found in the “International Sanctions” section of our website under the title “EU sanctions on Iran extend to natural gas”.