On July 18, 2014 the countries jointly named as “P5+1” (US, UK, France, Germany, Russia and China) and Iran had agreed to a four month extension of the Joint Plan of Action (“JPoA”), until November 24, 2014. For information about the JPoA see The Club’s Circular of 17 January 2014. During this time the P5+1 nations and Iran will continue to negotiate in an effort to reach a comprehensive agreement on the future of Iran’s nuclear program.
It has been made clear that during the four month extension the U.S. will continue to suspend the sanctions that were eased on January 20, 2014 under the JPoA, but will “…continue to vigorously enforce the sanctions that remain in place.” During a press conference late on July 18, a US Senior Administration Official provided more details regarding the continued easing of U.S. sanctions against Iran, stating:
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So, to be more specific, the – in the JPOA extension that has been agreed to, for the next four months we will continue the suspension of the sanctions on automotive imports into Iran, petrochemical exports, and trade in gold. Critically, the overwhelming majority of our sanctions, including the key oil, banking, and financial sanctions, all remain in place. And we will continue to vigorously enforce those sanctions throughout the extension period.
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Therefore, the U.S. sanctions regime remains as it did before July 20, 2014. The same is expected for EU sanctions.
Notably, This extension until November does not change the position in relation to Club cover, which means that claims arising between now and 24 November 2014 – or at any time during the relief – cannot be paid after 24 November 2014. The previous advice issued (see info dated 20 January 2014 on the Club’ s hompage under “Topical issues”) remains extant. Hence, members are recommended to excercise great caution if trading to or from Iran.
Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.