The historical background on the EU's sanctions against Iran based on its pursuit of nuclear technology:
In recent years, the UN Security Council has adopted several resolutions containing sanctions against Iran. These are based on the suspicion that Iran is building up a capacity to develop nuclear weapons, i e nuclear explosive devices and delivery vehicles for nuclear weapons systems. In the past, Iran has not heeded the repeated resolutions on the issue by the UN International Atomic Energy Agency (IAEA), nor has it accepted the negotiation proposals offered. The aim of the Security Council resolutions is to induce Iran to act in such a way as to restore the world's confidence that its nuclear activities have exclusively civilian and peaceful purposes.
In a resolution (1737) of December 2006, the Security Council required that Iran suspend all nuclear activities related to enrichment and reprocessing, as well as all work on heavy water-related projects. The resolution imposed certain sanctions against Iran. Since Iran did not fulfil the UN Security Council requirements within the time limit set, the Council adopted further resolutions (1747 and 1803) tightening and expanding the sanctions in March 2007 and March 2008. The latest Security Council resolution against Iran (1929), which further tightened sanctions against the country, was adopted on 9 June 2010. The resolution focuses primarily on a strengthened arms embargo and on measures linked to the area of nuclear and missile technology, but it also paves the way for measures targeting the energy sector. The targeted measures are also extended to include the Iranian Revolutionary Guard Corps and the transport sector, in particular an Iranian shipping company (Islamic Republic of Iran Shipping Line) and its many subsidiaries. All of the resolutions state that the sanctions will be rescinded by means of a decision in the Security Council if Iran fulfils the requirements set by the Security Council.
Most of the sanctions imposed are binding on UN Member States. To implement them in the EU, the Council of the European Union has adopted common positions and Council decisions (originally common position 2007/140/CFSP, with several subsequent supplementary decisions) that essentially follow the Security Council resolutions, but clarify or tighten the sanctions on some points. The latest Security Council resolution was implemented by the EU via a Council decision of 26 July 2010 (2010/413/CFSP), which also incorporated all the previous EU sanction decisions and therefore supersedes the previous positions and decisions. The decision also tightened the EU sanctions against Iran beyond what was stipulated in the Security Council resolution, in areas including trade (primarily in dual-use products), transport (aviation and shipping) and the energy and financial sectors. Furthermore, individual restrictions in the form of freezing of assets and travel bans to the EU were imposed on a number of additional natural and legal persons with links to the Iranian nuclear or missile technology programme, or the Iranian Revolutionary Guard Corps. The annexes to this Council decision listing natural and legal persons have been revised on two occasions during 2011, partly through Council Decision 2011/299/CFSP of 23 May 2011, and partly through Council Decision 2011/783/CFSP of 1 December 2011.
On 23 January 2012, the EU decided, without reference to any new Security Council Resolution, to independently expand the sanctions against Iran, primarily in the energy and financial sectors. This occurred through Council Decision 2012/35/CFSP which involved amendments to Council Decision 2010/413/CFSP, which is still in effect as the underlying decision. Further specific supplementary decisions were also made (Council Decision 2012/152/CFSP of 15 March 2012 and Council Decision 2012/169/CFSP of 23 March 2012). All the categories of the underlying Council decision and the subsequent supplementary decisions that pertain to EU law have now been incorporated into Council Regulation (EU) No 267/2012, see below.
Most of the sanctions come under the jurisdiction of the EU and are implemented through EU regulations adopted by the Council of the European Union. The original regulation, Council Regulation (EC) No 423/2007, was subsequently supplemented with several additional regulations for the implementation of sanctions against Iran. On 25 October 2010, a consolidated regulation, Council Regulation (EU) No 961/2010, was adopted, which drew together the latest sanction-tightening measures and previous sanctions, and thereby superseded all of the previous regulations concerning sanctions against Iran. The further tightening of the sanctions decided by the EU in its Council decision of 23 January 2012, like the supplementary Council decisions from 2011, have been operationalised and are now contained in a new regulation, Council Regulation (EU) No 267/2012, adopted by the EU on 23 March 2012. This regulation also contains the provisions previously contained in Council Regulation (EU) No. 961/2010. It thereby entirely supersedes Council Regulation (EU) No 961/2010, which has been repealed. Council Regulation (EU) No 267/2012 is directly applicable in Sweden and applies as Swedish national law. Should the Security Council decide to rescind its sanctions, the EU must determine whether to rescind or amend its own sanctions in a decision of its own.
and what those entail:
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A simplified description of the various types of sanctions can be accessed below by clicking each point. The sanctions are largely decided by legal instruments adopted by the Council of the European Union and are now contained in Council Decision 413/2010/CFSP and its subsequent amendments and Council Regulation (EU) No 267/2012, also with subsequent amendments. Each section specifies the article in which the sanctions are described in detail. The subsequent amendments mean that the original wording of a given article in either of the fundamental legal instruments may have been superseded or expanded – for this reason it is important to check subsequent legal instruments to be sure of the current wording. Documents can be downloaded via the link “Relevant EU documents”.
It is worth noting that a number of important definitions can be found in Article 1 of Regulation (EU) No 267/2012 that affect the interpretation of the articles dealing with prohibitions, restrictions or monitoring, depending on the type of sanction. Among others there is a broad definition of what is to be understood by “Iranian person, entity or body”, which is a term to which most of the prohibitions refer.
The prohibitions and regulations that apply under the sanctions are, in most cases, complemented with a prohibition on intentionally participating in their circumvention. This is gathered in Article 41 of Council Regulation (EU) No 267/2012.
It is indicated under each type of sanction which Swedish authority has been designated the competent authority under the Council Regulation or is in some other way responsible for the relevant policy area and the implementation of the sanction in Sweden. A list of these authorities can be found via the link “Competent Swedish authorities”. Questions about interpretation of each regulation and how they are to be applied in Sweden should primarily be addressed to these authorities.
General information about the system of sanctions against Iran can be provided by the Middle East and North Africa Department, the Department for Disarmament and Non-Proliferation and the sanctions coordinators at the Ministry for Foreign Affairs.
Restrictions on exports and imports, and associated prohibitions on transportation, technical assistance and financing
D. Prohibition on the export etc. of key naval equipment
E. Prohibition on the export etc. of certain software
F. Prohibition on the import etc. of crude oil, petroleum products and petrochemical products
G. Prohibition on the import etc. of natural gas
H. Prohibition on the export and import of gold, precious metals and diamonds
I. Prohibition on the export etc. of graphite and certain metals
J. Prohibition on the supply of Iranian banknotes and coins to the Central Bank of Iran
Restrictions in the financial sector, including asset-freezing
K. Prohibition on or authorisation requirements for the financing of certain Iranian companiesL. Restrictions on financial support for tradeM. Prohibition on financial commitments towards the Government of IranN. Freezing of assets and prohibition on the provision of assetsO. Prohibition on and controls of financial transactionsP. Other banking restrictionsQ. Prohibition on handling Iranian public or public-guaranteed bondsR. Prohibition on insurance and reinsurance servicesS. Increased monitoring of and restrictions on the Iranian transport sector (aviation and shipping)
Other restrictions
T. Travel restrictionsU. Restrictions on teaching or training
and what are the relevant EU/EC council decisions:
The EU documents setting out the sanctions are available for download here. The sanctions are currently regulated in the following twelve Council Decisions: the original Council Decision 2010/413/CFSP of 26 July 2010, and amendments and additions made through Council Decisions 2010/644/CFSP of 25 October 2010, 2011/299/CFSP of 23 May 2011, 2011/783/CFSP of 1 December 2011, 2012/35/CFSP of 23 January 2012, 2012/152/CFSP of 15 March 2012, 2012/169/CFSP of 23 March 2012, 2012/205/CFSP of 23 April 2012, 2012/457/CFSP of 2 August 2012, 2012/635/CFSP of 15 October 2012, 2012/687/CFSP of 6 November 2012 and 2012/829/CFSP of 21 December 2012. These supersede common position 2007/140/CFSP and its subsequent amendments, which have now been repealed.
The parts of the sanctions pertaining to EU law are now regulated in Council Regulation (EU) No 267/2012 of 23 March 2012, as added to and amended by Council Regulations (EU) Nos 350/2012 of 23 April 2012, 708/2012 and 709/2012 of 2 August 2012, 945/2012 of 15 October 2012, 1016/2012 of 6 November 2012, 1067/2012 of 14 November 2012, and 1263/2012 and 1264/2012 of 21 December 2012. Council Regulation (EC) No 267/2012 supersedes Council Regulation (EC) No 423/2007 and its successor Council Regulation (EU) No 961/2010, which was also amended several times and has now been repealed.
Council Regulation (EU) No 267/2012 contains a number of annexes:
Annex I contains a list of the dual-use products contained in the annex to the general EU Regulation on such products (Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items) that are not covered by the prohibition on exports etc. to Iran. The other products contained in Regulation 428/2009 are covered by the prohibition. Regulation 428/2009 is also available for downloading here.
Annex II lists additional dual-use products that are prohibited for export, etc. to Iran.
Annex III lists dual-use products that may only be exported, etc. to Iran subject to authorisation.
Annex IV lists the Iranian oil and petrochemical products that are prohibited for import, transport, etc.
Annex IVA lists the products referred to as 'natural gas' that are prohibited for import etc. from Iran.
Annex V lists the Iranian petrochemical products that are prohibited for import, etc.
Annex VI lists equipment and technology for the oil and gas sector and the petrochemicals industry that are prohibited for export, etc. to Iran.
Annex VIA lists other important equipment and technology for the Iranian oil and gas sector and the petrochemicals industry that are prohibited for export etc. to Iran.
Annex VIB lists important naval equipment that is prohibited for export etc. to Iran.
Annex VII lists gold, diamonds and other precious metals that are prohibited for export etc. to the Iranian Government, and purchase and import from the same.
Annex VIIA lists software that is prohibited for export etc. to Iran.
Annex VIIB lists the graphite and metal products that are prohibited for export etc. to Iran.
Annex VIII lists the persons, entities and bodies whose assets have been frozen by decision of the UN.
Annex IX lists the persons, entities and bodies whose assets have been frozen by decision of the EU.
Annex X lists the equivalent websites to this sanctions website in all the EU Member States, where information can be found concerning the competent authorities designated in each country for certain matters under the Regulation.
The natural persons listed in Annex VIII and Annex IX of the Regulation are also, with one or two exceptions, subject to travel restrictions under Annex I and Annex II of Council Decision 2010/413/CFSP.
The applicable Swedish ordinance concerning certain sanctions against Iran (2007:704) and the ordinance amending it (2011:174) can also be downloaded.
It should be noted that Sweden's web page says that these English translations may be somewhat out of date and that one should use the Swedish as a definitive source.
And we will delve into each of these subsections in subsequent posts.
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