Iran Sanctions - EU Regulation 267/2012 * Update*

On 23 January 2012 The European Union Foreign Affairs Council agreed to introduce further measures impacting on trade that would or could support the furtherance of the Government of Iran’s nuclear aspirations.

Specifically the Council has introduced new measures to prohibit the trade and transportation of crude oil, petroleum products and petrochemical products. The new measures were set out in Council Decision 2012/35. On 23 March 2012 the Council issued Regulation 267/2012 implementing the provisions of the Decision and repealing Regulation 961/2010.

The International Group has been engaged in discussions with the UK Treasury and the UK Business Innovation and Skills Department to discuss the interpretation and application of the Regulation. Following these discussions an updated frequently asked questions has been issued.

The FAQ’s issued on 14 August 2012 should be read in conjunction with, but supersede, the FAQs issued on 8 February 2012, 27 March 2012 and 25 May 2012 and cover the following current issues;

• The legal Status of EU Council Regulation 267/2012;
• The expired “grace periods”;
• Impact on shipowners.
• Impact on the cover provided by clubs

30 April 2012 

Members are reminded that the grace period for the continuation of contracts concluded prior to 23 January 2012 relating to the carriage of Iranian petro-chemical products, comes to an end at 23:59 on 30 April 2012.

The grace period for the carriage of Iranian crude and petroleum products, which includes the carriage of bunkers, will expire at 23:59 on 30 June 2012.

19 April 2012 

On 23 January 2012 The European Union Foreign Affairs Council agreed to introduce further measures impacting on trade that would or could support the furtherance of the Government of Iran’s nuclear aspirations. Specifically the Council has introduced new measures to prohibit the trade and transportation of crude oil, petroleum products and petrochemical products. The new measures were set out in Council Decision 2012/35. On 23 March 2012 the Council issued Regulation 267/2012 implementing the provisions of the Decision and repealing Regulation 961/2010.

The International Group has since been in further discussion with the UK Treasury and has received feedback on a number of common areas of enquiry from members and has updated the FAQs issued on 29 March.

Please click here for the updated FAQs.

27 March 2012 

COUNCIL REGULATION (EU) No. 267/2012 0f 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 was published and is effective from 24 March 2012.

Click here for regulation No. 267/2012.

In addition the UK Treasury has issued a useful guidance note. 

Comprehensive guidance on Iran sanctions can be found in our Iran Sanctions Loss Prevention Briefing.

Regulation 267/2012:

• Replaces Regulation 961/2010; and

• Gives effect to Council Decision 2012 /35/ CFSP.

Regulation 267/2012 replicates much of what was in Regulation 961 but at the same time introduces new provisions targeting the transportation, insurance and reinsurance  of Iranian  crude oil, petroleum products and petrochemicals.

The most relevant provisions are found at Articles 11 – 14. In summary:

• Subject to certain limited exceptions, Vessels owned or operated by EU companies, businesses or non EU parties conducting such business from within the EU may no longer import into the EU, purchase or transport Iranian crude oil, petroleum products and / or petrochemicals; and

• P&I Clubs and other marine insurers domiciled or operating within the EU may not provide P&I insurance to vessels carrying Iranian crude oil and / or petroleum products after 1 July 2012; and 

• P&I Clubs and other marine insurers domiciled or operating within the EU may not provide P&I insurance to vessels carrying Iranian petrochemicals after 1 May 2012; and 

• IG P&I Clubs which are not domiciled within the EU may not pool liabilities arising out of claims involving vessels engaged in such trades.

Regulation 267/2012 provides for certain limited exceptions to the ban on the transportation of Iranian crude oil. It remains the case that vessels may carry Iranian crude oil pursuant to contractual obligations concluded prior to 23 January 2012 provided such voyages are completed before 1 July 2012.

It will also be lawful to transport Iranian crude oil where the crude oil is the prescribed method of payment under a contract which predates 23 January 2012.

Similar exceptions apply to the carriage of Iranian petrochemicals, however such contracts (unless the supply of Iranian petrochemicals is the agreed method of payment under a contract predating 23 January 2012) must be completed by 1 May 2012.

Members are reminded that an entry with the Association will automatically cease in the event that a vessel is traded in a manner which may expose the Association to a risk of sanctions.

Any enquiries should be directed to Mark Robinson or Mike Salthouse.