Iran Sanctions Update: Significant Reduction Exemptions

As reported in Circular 16/18 when U.S. secondary sanctions were re-imposed against the purchase and carriage of Iranian crude oil, petroleum products, liquified gases and petrochemicals, in November 2018, eight countries - China, Greece, India, Italy, Japan, South Korea, Taiwan, and Turkey – were granted waivers, known as Significant Reduction Exemptions (“SREs”), to permit the import of limited amounts of Iranian crude oil up to 2 May 2019.

Members should be aware that the U.S. State Department has announced that these SREs will not be renewed beyond 2 May 2019. In a further clarification provided to the Club’s US legal advisors, the State Department has advised that voyages with shipments pursuant to the existing SREs must be completed within that 2 May deadline. Any purchase or carriage of Iranian crude cargoes after 2 May 2019 is therefore likely to be treated as a breach of U.S. sanctions, with all the risks which that involves.  

Should you have any detailed enquiries regarding the effect of sanctions on the operation of the Club, or the cover it provides, please contact Nigel Carden (Tel: +44 20 7204 2147; Email: nigel.carden@thomasmiller.com)