Additional US Sanctions Authorised *Update*

In order to strengthen the sanctions laws currently in force against Iran, President Obama signed into law the Iran Threat Reduction and Syria Human Rights Act of 2012 on 10th August 2012.

This far reaching sanctions legislation is intended to apply additional pressure on the Government of Iran to abandon its ongoing nuclear program.

A copy of the Iran Threat Reduction and Syria Human Rights Act of 2012 can be read here.

The Act includes a number of provisions which directly affect the shipping sector, including:

• Sanctions against any party that owns, operates, or controls, or insures, a vessel involved in Iran’s crude oil exports on or after the date that is 90 days after the date of enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012.
• Sanctions against shipping companies that conceals the Iranian origin of crude oil or refined petroleum products transported on the vessel.
• Blocking of any person that sells, leases, or provides a vessel or provides insurance or reinsurance or any other shipping service that could support Iranian proliferation or terrorism activities.
• Permits the President to prohibit a vessel owned, operated, or controlled by a person, with respect to which the President has imposed sanctions, from landing at a port in the United States for a period of not more than 2 years.

06 August 2012 

The US Government has recently issued a new Executive Order which became effective on 31 July 2012 – Authorizing Additional Sanctions with Respect to Iran.

The Executive Order includes the following:

• Knowingly conducting or facilitating significant transactions with a private or public foreign financial institution or other entity for the purchase or acquisition of Iranian petroleum, petroleum products and / or petrochemical products will be sanctionable.
• Sanctions are authorised for individuals and entities that provide material support to the National Iranian Oil Company, Naftiran Intertrade Company, or the Central Bank of Iran, or for the purchase or acquisition of US bank notes or precious metals by the Government of Iran.
• The existing exception rules under the National Defence Authorisation Act apply to this new Executive Order. Thus, countries that are determined to have significantly reduced their volume of purchases of Iranian crude oil will receive an exception from this new measure as well.
• Strict penalties for any person or entity who has knowingly been engaged in transactions for the purchase of Iranian oil, petroleum products and or petrochemical products such as depriving foreign sanctions breakers of access to US financial markets or restricting or prohibiting the import of goods, or services, directly or indirectly into the United States from a sanctioned person or entity.

 A copy of the Executive Order – Authorizing Additional Sanctions with Respect to Iran may be read here.