Iran Sanctions - Geneva Nuclear Talks

Members will be aware that an initial agreement has been reached by Iran and a group of nations known as P5+1(the United States, United Kingdom, Germany, France, Russia, and China, facilitated by the European Union) on the Iranian Nuclear programme. As part of the deal Iran will get relief from some aspects of the current sanctions regime.

The P5+1 has committed within this initial phase to:

· Not impose new nuclear-related sanctions for six months, if Iran abides by its commitments under this deal, to the extent permissible within their political systems. 

· Suspend certain sanctions on gold and precious metals, Iran’s auto sector, and Iran’s petrochemical exports, potentially providing Iran approximately $1.5 billion in revenue. 

· License safety-related repairs and inspections inside Iran for certain Iranian airlines.

· Allow purchases of Iranian oil to remain at their currently significantly reduced levels – levels that are 60% less than two years ago.  $4.2 billion from these sales will be allowed to be transferred in installments if, and as, Iran fulfills its commitments.

· Allow $400 million in governmental tuition assistance to be transferred from restricted Iranian funds directly to recognized educational institutions in third countries to defray the tuition costs of Iranian students.

The US briefing note can be accessed at:

http://www.whitehouse.gov/the-press-office/2013/11/23/fact-sheet-first-step-understandings-regarding-islamic-republic-iran-s-n

The EU sanctions are likely to follow the US position.  There are some reports that the EU changes will likely be implemented in December but this is not confirmed as yet.

However, the sanctions deal is unlikely to have much, if any, impact for ship owners in the short term.  The US in particular has been keen to point out that during the initial six month period (pending a long term comprehensive solution) the overwhelming majority of the sanctions –  including the key oil, banking, and financial sanctions architecture  – will remain in place and be enforced vigorously.  As such the Club’s position on sanctions remains unchanged.  

North will continue to monitor the situation closely and any developments relevant to ship owners in respect of club cover will be reported.