Restrictive measures against Iran

KEY POINTS

Article 215 of the Treaty on the Functioning of the European Union and Article 29 of the Treaty on European Union provide the general framework for EU sanctions pertaining to Iran.

Decision 2010/413/CFSP and Regulation (EU) No 267/2012

The decision and the regulation transpose UN sanctions as a follow-up to the UNSCR requiring Iran to stop enriching uranium for nuclear proliferation purposes. They also impose a range of autonomous European Union (EU) economic and financial sanctions on Iran, including the following.

Trade in various goods:

• banning arms exports to Iran;
• banning exports of dual-use goods and goods that could be used in nuclear-enrichment-related activities;
• banning imports of crude oil, natural gas, petrochemical and petroleum products;
• banning the sale or supply of key equipment used in the energy sector;
• banning the sale or supply of gold, other precious metals and diamonds;
• banning certain naval equipment;
• banning certain software.

Financial sector:

• freezing the assets of the Central Bank of Iran and major Iranian commercial banks;
• laying down notification and authorisation mechanisms for transfers of funds above certain amounts to Iranian financial institutions.

Transport sector:

• preventing access to EU airports for Iranian cargo flights;
• banning maintenance and service of Iranian cargo aircraft or vessels carrying prohibited materials or goods;
• imposing travel restrictions and asset freezes against additional listed individuals and entities.

On 20 July 2015, UNSCR 2231 (2015) was adopted and agreed by Iran and the E3/EU+3¹. This resolution:

• endorsed the joint comprehensive plan of action;
• allowed for certain exemptions to existing restrictive measures; and
• defined the schedule and commitments to be undertaken by all parties to lead to the termination of restrictive measures against Iran.

On 16 January 2016 (implementation day), the UN lifted some of its nuclear-related restrictive measures, as set by UNSCR 2231 (2015), and the Council of the European Union lifted all nuclear-related economic and financial EU sanctions against Iran. However, some other restrictions remain in force.

Decision 2011/235/CFSP and Regulation (EU) No 359/2011

Decision 2011/235/CFSP provides for a travel ban and a freezing of funds² and freezing of economic resources³ for individuals responsible for serious human rights violations in Iran, and those associated with them. Regulation (EU) No 359/2011 gives effect to Decision 2011/235/CFSP insofar as it concerns the following.

Measures to combat internal repression

• It is prohibited to sell, supply, transfer or export the following, whether or not it originates in the EU, to any person or body in Iran or for use in Iran:
  • equipment that might be used for internal repression, as listed in Annex III;
  • equipment, technology or software identified in Annex IV, without prior authorisation from the relevant EU Member State.
• It is prohibited to provide technical assistance, brokering services or financing to any person or body in Iran or for use in Iran if the services are related to equipment that might be used for internal repression, as listed in Annex III.
• It is prohibited to provide any telecommunication or internet monitoring or interception services to Iran’s government, public bodies, corporations and agencies or to any person or entity acting on their behalf.

Financial sanctions

• Regulation (EU) No 359/2011 outlines:
  • a freezing of funds and economic resources belonging to, owned or held by individuals or bodies listed in Annex I;
  • a ban on funds or economic resources being made available to individuals, entities or bodies listed in Annex I;
  • a ban on activities intentionally circumventing the above measures.
• Annex I is a list of individuals who, in accordance with Decision 2011/235/CFSP, have been identified by the Council as being responsible for serious human rights violations in Iran, and those associated with them.
• Member States may exceptionally authorise the release of frozen funds or economic resources, including for basic expenses such as food, medicines and utilities and reasonable professional fees.

Humanitarian exceptions

Decision (CFSP) 2024/1795 amends Decision 2011/235/CFSP, introducing humanitarian exceptions from the restrictive measures directed against certain individuals and entities in view of the situation in Iran. This is to facilitate principled humanitarian action by impartial humanitarian actors in Iran and thus permit certain organisations and agencies acting as the EU’s humanitarian partners to be exempted from the prohibition to make funds or economic resources available to designated individuals, entities and bodies, exclusively for humanitarian purposes in Iran.

Regulation (EU) 2024/1796 amends Regulation (EU) No 359/2011 serving to implement the changes introduced by Decision (CFSP) 2024/1795 with a view to ensuring they are uniformly applied in all Member States.