EU Sanctions against Iran
Tagged: Europe, Iran, sanctions, shipping, trade
Following the CISADA sanctions, the UN, EU and UK have issued separate sanctions against Iran along similar lines.
The EU sanctions ban European companies from investing in Iran’s oil and gas industries, while restricting trade and financial links including barring any European company from providing insurance services to Iranian entities.
The EU sanctions go further than the UN sanctions currently in place.
This has subsequently had the effect of a large majority of EU and UK insurers declining risks that involve regular trade to Iran, carriage of goods to Iran and/or risks that are known to have an Iranian entity involved in the operation of the vessel.
Notwithstanding the parameters of the sanctions, underwriters are being advised to take a very cautious position and are already including the new JH Sanctions Exclusion Clause in all policies. In addition, the treaty market is starting to impose mid-term amendments which will translate to all original policies being issued with the Sanctions Exclusion Clause included as a matter of course.
Companies trading into Iran, trading with Iranian entities and/or chartering vessels to Iranian companies (notwithstanding the nature of those trades) should consider their position carefully as cover may not be available for all or part of the trade.
We would urge companies involved in this trade or considering becoming involved in trading to or contracting with Iranian entities to seek confirmation from their insurer in advance that cover will continue unaffected.
For anyone who wishes to discuss their insurance situation with FP Marine Risks, please contact your usual broker or email info@fp-marine.com
Clyde and Co have released the following information which provides a good overview of the situation: http://www.clydeco.com/attachments/published/19085/Iran%20EU%20sanctions%20update%20July%202010.pdf
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