EU and US lift sanctions on Iran
Published on: 17/01/2016
The EU and the US announced the lifting of the economic and financial sanctions against Iran with immediate effect. Iran ordered 114 planes from Airbus immediately.
Yesterday evening (16.01.2016), Iran has been found compliant by the International Atom Energy Agency (IAEA) with the terms of the Atom Road-Map Agreement of 14.07.2015.
EU foreign policy chief Mrs Frederica Mogherini officially announced that the 28 EU member states formally adopted the lifting of the multilateral and national economic and financial sanctions related to Iran’s nuclear programme, including the ban applying to the SWIFT system, financial transfers, trade finance, insurance and reinsurance, trade in precious metals and stones, access to EU airports, construction of vessels, naval equipment and technology, and others.
As some of the Iranian banks will remain banned, it will be important to follow up further developments.
Frederica Mogherini also confirmed that all necessary measures and steps have been taken on EU level to implement the lift of sanctions.
US President Obama signed an executive order revoking the Iran sanctions for non-US persons and entities. Sanction remain in place though for US entities and persons. However, the US Treasury announced yesterday that foreign subsidiaries of US entities are allowed to deal with Iran now.
The Treasury Department removed about 400 Iranians from its blocked person list yesterday.
The lift of sanctions is also freeing up Iranian assets held in the global financial system, estimated to be worth USD 50 – 150 billion.
The EU and the US did not lift sanctions that are related to the support of terrorism and the violation of human rights.
The ban on sales and export of conventional weapons and ballistic missile technology will continue five years and 8 years respectively.
Additionally; if Iran breaches the deal within the next 10 years, sanctions will be automatically re-imposed.
Iran announced on Saturday (16.01.2016) to increase its daily oil production by 500.000 barrels immediately and by further 500.000 barrels later in near future.
Iran reached a deal with Airbus to buy 114 passenger planes as soon as the lift of sanctions has been implemented. Iran’s Minister for Transport, Mr Abbas Akhondi, confirmed that the first shipment of planes to Iran will arrive before Nowruz, Iran’s new year, which falls on the 21st of March this year. Iran is looking to purchase around 400 passenger planes during the next ten years, as 100 of Iran’s 250 commercial planes are grounded due to lack of spare parts.
French and German car producers are preparing to deliver Iran with spare parts, to appoint national Iranian dealers, and to set up sales networks in Iran. Audi announced that it sees a growing potential in the premium segment.
Representatives of the four largest German banks, though, said that e reestablishment of banking services related to Iran may take up to one year.
It is expected that smaller banks will be offering Iran-related banking services much sooner.
The reestablishment of SWIFT relations with Iran is expected for February/March of this year.
Shanda Consult welcomes the lifting of sanctions!
Shanda Consult, with its Persian-speaking staff, is prepared to serve both Iranian clients and EU clients with consultancy and the set-up of structures for business and investment.
Please do not hesitate to contact us.