Sanctions by country
Sanctions in relation to Iran trading can be summarised as follows:
Prohibited cargoes and activities
- Shipment of military goods and technology
- Shipment of missile technology
- Shipment of goods and technology which could contribute to the development of nuclear weapon delivery systems
- Shipment of equipment for internal repression
- Shipment of equipment for monitoring communications
- Shipment of US goods
- Any other US involvement including US dollar transactions
- Involvement of persons or entities on the US SDN list or EUs list of targets
Cargoes that requires a license:
- Goods and technology on the Nuclear Suppliers Group list
- Other listed dual-use goods and technology that could contribute to reprocessing, enrichment-related, heavy water-related or other activities inconsistent with the JCPOA
- Graphite and raw or semi-finished metals
- Enterprise Resource Planning software, designed specifically for use in nuclear and military industries
- Payments involving Iran or Iranian entities cannot involve any of the following currencies: USD, CAD, NZD, AUD
For detailed information about EUs and USAs sanction regimes please see the below PDF files.
Iran Sanctions - European Union (30 June 2016)
Iran Sanctions - United States (25 February 2016)
OFAC Frequently Asked Questions
The Sanctions Legislation (4 December 2013)
Operational and Practical Issues (25 January 2012)
Frequently Asked Questions (25 January 2012)
Member Alert, Syria Sanctions (13 May 2016)
Syria Sanctions: United States (14 December 2015)
Syria Sanctions: European Union (16 December 2014)
UKRAINE & RUSSIA
Ukraine and Russian Sanctions (22 December 2014)
Notes on Sanctions and P&I Cover
P&I cover for liabilities arising out of sanctions legislation is available only under limited circumstances. In the event the sanctions legislation will trigger a penalty by way of a fine imposed on the member this will be covered pursuant to the test in P&I Rule 7 Section 6. Consequently, the Club’s position, in line with that of other Clubs, is that the member has a duty to take steps to satisfy the legality of the member’s own actions, and to ensure the vessel is not engaged in any unlawful trade, see inter alia P&I Rules 10 and 11. Hence, unless the member can show that reasonable steps were taken to avoid the sanction and that the circumstances otherwise would justify Club cover then the penalty is likely to fall outside Club cover.
The same test is likely to apply for other liabilities that could arise due to sanctions legislation, for instance if cargo onboard a vessel is damaged in the event the vessel is detained or banned from trading as a result of sanctions legislation, particularly if the legislation and its implications was known or ought to have been known to the member. In certain severe situations where breach of sanctions legislation has been made with knowledge of the member there is a risk that the P&I insurance can cease altogether pursuant to Rule 27 (f). However, it is important to keep in mind that each situation is unique and cover issues have to be decided in the light of prevailing circumstances.
Sanctions legislation affecting the Club and its reinsurers may also have impact on Club cover. Pursuant to Rule 11 Section 4 liabilities may be excluded from cover in case payment of a claim is likely to expose the Club or any of its reinsurers to sanctions. The payment restrictions in the EU Iran sanctions legislation are examples of such legislation. To this end, the Club is subject to Swedish law and to the authority of the Swedish Financial Supervisory Authority although the legislation in other countries may be relevant. Needless to say, payment restrictions may also prevent the Club from assisting a member in providing a guarantee for example providing a Letter of Undertaking to a cargo claimant.
Members are encouraged to seek specific legal advice on any activity or transaction which may involve sanctions legislation in order to assess their exposure to sanctions. This is particularly important because sanctions legislation may have adverse impact on the members’ P&I cover. In addition, the Club’s ability to assist members may become restricted due to sanctions legislation.
In case members have any further questions regarding sanctions and Club cover please contact the Club.