On August 6, 2018, the President signed Executive Order 13846, which reimposes certain sanctions with respect to Iran that were lifted or waived in connection with the United States’ participation in the Joint Comprehensive Plan of Action (JCPOA). Specifically, sanctions on the following activities were reimposed:
- Sanctions on the purchase or acquisition of U.S. dollar banknotes by the Government of Iran;
- Sanctions on Iran’s trade in gold or precious metals;
- Sanctions on the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished metals such as aluminum and steel, coal, and software for integrating industrial processes;
- Sanctions on significant transactions related to the purchase or sale of Iranian rials, or the maintenance of significant funds or accounts outside the territory of Iran denominated in the Iranian rial;
- Sanctions on the purchase, subscription to, or facilitation of the issuance of Iranian sovereign debt; and
- Sanctions on Iran’s automotive sector.
In addition, the Executive Order broadened the scope of certain sanctions that were in effect prior to the JCPOA implementation by providing new authority to sanction persons on or after November 5, 2018 who are determined to provide material support for, or goods and services in support of, persons blocked for:
- Providing material support for, or goods and services in support of, the purchase or acquisition of U.S. bank notes or precious metals by the Government of Iran;
- Providing material support for, or goods and services in support of, the National Iranian Oil Company (NIOC), the Naftiran Intertrade Company (NICO), or the Central Bank of Iran (CBI); or
- Being part of the energy, shipping, or shipbuilding sectors of Iran or a port operator in Iran or knowingly providing significant support to certain other blocked persons.
The Executive Order also expands the menu of sanctions available for persons determined to have, on or after November 5, 2018, knowingly engaged in certain significant transactions relating to petroleum, petroleum products, or petrochemicals from Iran.
As a reminder from our article last month, following a 180-day wind down period ending on November 4, 2018, the U.S. government will reimpose the following sanctions that were lifted pursuant to the JCPOA:
- Sanctions on Iran’s port operators, and shipping and shipbuilding sectors, including on the Islamic Republic of Iran Shipping Lines (IRISL), South Shipping Line Iran, or their affiliates;
- Sanctions on petroleum-related transactions with, among others, the NIOC, NICO, and National Iranian Tanker Company (NITC), including the purchase of petroleum, petroleum products, or petrochemical products from Iran;
- Sanctions on transactions by foreign financial institutions with the Central Bank of Iran and certain designated Iranian financial institutions;
- Sanctions on the provision of specialized financial messaging services to the Central Bank of Iran and certain Iranian financial institutions;
- Sanctions on the provision of underwriting services, insurance, or reinsurance; and
- Sanctions on Iran’s energy sector.
In addition, effective November 5, 2018, the U.S. government will revoke the authorization for U.S.-owned or -controlled foreign entities to wind down certain activities with the Government of Iran or persons subject to the jurisdiction of the Government of Iran that were previously authorized pursuant to General License H.