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Iran Sanctions for 2018

On May 8th, 2018, the president of U.S Donald Trump made an announcement, and according to it, he said that the United States would withdraw itself from the Joint Comprehensive Plan of Action. Along with the decision, the President also issues a memorandum named National Security Presidential Memorandum. That memorandum re-imposed the sanctions which applied to every Non-US person. Based upon the targeted economic sector, this sanction will be imposed in minimum 90 and maximum 190 days after the president has announced it. While in the implementation, the first batch of the announced sanctions is approaching very soon. On the 6th of August, U.S is supposed to re-impose some penalties, and that is as follows:

  • Sanctions applied upon the purchase of dollar notes of U.S by the Iranian Government.
  • Sanctions imposed on the trade of Iran in precious metals and gold.
  • Sanctions imposed on the indirect and direct sale, transfer of good or supply to or from Iran. Amount of graphite and other materials and raw materials of aluminium and steel and also the software needed to integrate the industrial processes.
  • Sanctions implied on essential transactions regarding the sale and purchase of Iranian trials and on maintaining critical funds or accounts outside Iran’s territory which got domination in Iranian rials.
  • Sanctions imposed on the deal, procurement, distribution and subscription of the issuance of debt from foreign countries.
  • Sanctions imposed on the automotive sector of Iran.

These imposed sanctions will also be applied to the providence of related services. For example, if an entity or a person provides loan or financing to the automotive sector of Iran, that entity or person would also have to face the exposure to the secondary sanctions announced. Shipping companies and finance sectors should have a complete idea of these changes and penalties. If you are a Non-US person and you are involved in any of the activities mentioned above, you should rush to seek a piece of advice in this regard that how these sanctions could have the impact on your business. And if you are an EU person, your situation can be at stake. According to the statement of the US treasury, the wind-down period will be of 90 to 180 days. Once the sanctions have been implemented, there could be issues. The first deadline is for 6th, and it will affect the purchase of US dollars and the trade of metals and gold. The next window period is for 4th of November, and it will directly target the financial condition of Iran. When 180 days come to an end, serious charges would be held against the individuals who acted against the sanctions. Iran is listed top in the list of oil producers, and these sanctions are seriously going to harm the revenues Iran generates from its sale of oil. Not only oil, but these sanctions will also impact the other industries too like the aviation industry will have a high impact. Tourism in Iran is also a significant source of revenue generation, and it will also have a severe adverse effect.