This is the fourth bulletin in our regular series on Iran
Further to our note in September we have been informed by the
European Commission that there are some delays in the adoption of
the EU implementing Regulation and the final text would not be
ready to be submitted to the European Council before the 25th of
October. Apparently the European Council is putting pressure on the
Commission and Member States to finalise the text of the Regulation
for it to be adopted at the Foreign Affairs Council meeting of the
25th October, but if the final text of the Regulation is not agreed
by then, it should nevertheless be adopted and published on the
Official Journal before the end of October.
Finally, we were also informed by the European Commission that
there were some changes in the text of the draft Implementing
Regulation published on 30 August and in the list of designated
Recent Sanctions Developments
Russia has axed its missile deal with Iran and says it will
refrain from supplying Iran with an advanced missile defence
system. In the last week of September Russia issued a Decree and
has joined the UN sanctions against Iran. The decree bans the
delivery of missile systems, and ships to Iran amongst other things
and bans the financing, provision of insurance and reinsurance for
Iranian companies which may be involved the nuclear programme.
The Chinese government has been enforcing the UN sanctions in
relation to Iranian business in the last two months and there is no
sign that such measures would be relaxed. China has not enforced
the UN sanctions by way of domestic legislation however Hong Kong
and Macao have promulgated the relevant legislation and therefore
supervision in these regions should be stricter.
On the 6th October HM Treasury issued General Notice of Renewal
of Article 4 Direction relating to Terrorism (United Nations
Measures) Order 2009. This Notice has been issued in respect of the
financial measures taken against terrorism. A copy of the note can
be found on the HM Treasury website. This Notice is to
publicise generally that on 5 October 2010 the Treasury renewed the
Direction under article 5(1) of the 2009 Order. Therefore the funds
and economic resources of the designated person remain frozen.
According to HM Treasury relevant institutions and other persons
are requested to check whether they maintain any accounts or
otherwise hold any funds or economic resources for, or provide
financial services to, the designated person. If so, they must
freeze such accounts or other funds and, unless licensed by the
Treasury, refrain from dealing with or making available such funds
and/or economic resources and suspend the provision of any
financial services. Relevant institutions must report their
findings to the Treasury.
On the 8th October HM Treasury announced that The Financial
Restrictions (Iran) Order 2009 expired at midnight on Friday 8th
October 2010. Bank Mellat and the Islamic Republic of Iran Shipping
Lines (IRISL) were designated persons for the purposes of the
Financial Restrictions (Iran) Order 2009. Together with all their
branches and certain named subsidiaries, Bank Mellat and IRISL
continue to be subject to an EU asset freeze, under EU Regulation
423/2007 as amended by EU Regulation 668/2010 of 26 July 2010. The
asset freeze must continue to be applied.
Since our last bulletin the governor of the Central Bank of Iran
(CBI) has cautioned that Tehran will withdraw all of its assets
from any country which shows unfriendly behaviour and imposes
financial restrictions on Iran.
The United States, Britain and some other European countries
have also considered the possibility of sanctioning the Central
Bank of Iran (CBI), which one Western diplomat described as the
"kingpin" of Iran's efforts to conceal banned
transactions outside Iran.
Our partners have been in the news recently Ben Knowles had an
article published in Maritime Risk International regarding the EU
sanctions on Iran and Martin Hall was quoted extensively on the
front page of Lloyd's List regarding the salvage industry
seeking exemption from the Iran sanctions.
Where a contract becomes unworkable or unprofitable because economic or other conditions have changed, one or other party may not fulfil some of its obligations under the contract or may even
try to walk away from the contract entirely.
This article focuses on the key issues arising out of the Prospectus Directive for SPVs or investment banks issuing listed derivatives under a programme. How are derivatives treated under the Directive? The Directive distinguishes between equity and non-equity securities. Derivatives, even if relating to underlying equities, would be non-equity securities for this purpose (unless the securities and underlying equities are both issued by the same entity, or entities in the same group).
This dispute involved a consideration of US and EU Burmese Sanctions Regulations and whether they prevented the buyers of Burmese rice from opening a letter of credit pursuant to the payment provision in the sale contract.
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