Freehills client alert on Iran sanctions on the metals sector - 8th May 2019
- Date: 09/05/2019
On 8th May, 2019, a new US Executive Order (E.O.) was issued which imposes sanctions with respect to the iron, steel, aluminium, and copper sectors of Iran. Essentially, the new EO seeks to cut off trade to and from the Iranian metals industries and deny Iran access to nuclear weapon capabilities. There is a wind-down period of 90 days for any pre-existing business, but any new contracts after 8th of May, 2019 will be considered sanctionable. Read this bulletin by Freehills, Hogan & Mahar LLP for more details.
On 2nd May, 2019, the Significant Reduction Exemptions (SREs), by which waivers were granted to eight countries (China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey) following the re-imposition by the US of secondary sanctions against Iran in November last year, have expired and the US State Department has confirmed that they will not be renewed.
On 8th May, 2019, the US re-imposed secondary sanctions on Iran, with wind-down periods of 90 and 180 days. Read more about the contractual implications of this here.