- New EU Iran Sanctions Regulation; US Determines Oil Supply Sufficient
- April 11, 2012
- Law Firm: Crowell Moring LLP - Washington Office
On March 23, 2012, the Council of the European Union adopted Regulation No 267/2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010. The new Regulation No 267/2012 replaces Regulation 961/2010 and gives effect to Council Decision 2012 /35/ CFSP; it replicates provisions of Regulation 961/2010 and became effective March 24.
The new regulation implements additional restrictions agreed by the Council on January 23, 2012, such as provisions targeting the transportation, insurance and reinsurance of Iranian crude oil, petroleum products and petrochemicals; restrictions and notification requirements for the transfers of funds and financial services; ban of the supply of specialized financial messaging services to listed persons; restrictions on gold, precious metals and diamonds; restrictions with respect to Iranian banknotes and coinage; provisions expanding assets freeze list and extending prohibited dual-use items list; provisions introducing derogations from freezing of funds and economic resources; amendments to the provisions regarding the diligence of EU financial and credit institutions; and clarifies certain existing implementing provisions.
On March 30, the Obama Administration released a statement declaring that, despite oil production disruptions, the world oil supply was sufficient to implement sanctions against the central bank of Iran to limit oil trading between that nation and other countries. The sanctions, coupled with an oil embargo from the European Union (EU), will take full effect in June. After that date, any entity doing business with Iran's central bank could be subject to U.S. sanctions.