The International Group's Sanctions Working group has developed an initial series of FAQs in relation to the recently announced EU additional measures against Iran contained in the Council Decision of 23 January 2012. The focus in the FAQs is on the aspects of the Decision which impact on trade and insurance arrangements.

As noted in the FAQs these are provided by way of guidance and pending publication of the Regulation which is expected sometime in March the guidance is necessarily general and cannot be viewed as definitive. Members are advised to consult with the Club on specific issues wherever necessary.

These FAQs were issued by the Group on 8th February 2012

The current list of FAQs in the attached PDF document includes:

Background

1. What is the legal status of the Decision pending the publication of the Regulation?

2. Will the implementing Regulation have retrospective effect in relation to shipping and insurance activities between the date of the Decision and the date of the Regulation?

3. To whom does the Decision apply?

4. What is the geographical scope of the words "import" and "transport" in the Articles 3a and 3b.?

5. Effect of the "grace periods" provided for in Articles 3c and 3d in the Decision.

6. What types of contract could constitute "contracts concluded before 23 January 2012" the purposes of Articles 3c and 3d?

7. What types of contract would constitute "ancillary contracts"

8. Must "ancillary contracts" have been concluded prior to 23 January 2012 or can they be entered into after that date?

9. How will the Decision impact on the P&I cover provided by clubs?

(a) Trading prohibitions

(b) Insurance and reinsurance prohibitions

(i) EU regulated clubs

(ii) Non-EU regulated clubs

10. Will the Decision impact on renewal of annual P&I cover from 20 February 2012?

11. How do the prohibitions impact on clubs' potential liabilities under "Blue Cards"?

12. Will the Decision impact on bunkering from Iranian suppliers/sources?

13. Will the Decision impact on trans-shipment cargoes or Iranian cargoes loaded outside Iran?