European Union Adopts Proposal for New Trade Restrictions on Iran

In mid-March 2007, the European Union adopted a proposal specifying trade restrictions on Iran. The goal is to further the restrictions placed on Iran, with emphasis on those practices which could contribute to Iran’s nuclear program. The proposal includes the following:

1. Guidelines for consistent implementation of the program
2. Specifying which goods and technology will be affected. Companies who wish to export such goods will have to apply for proper authorizations from the appropriate member state
3. Prohibition on providing technical or financial assistance to any parties listed in Annex I or Annex II of the Regulation
4. Authorization for Member States to override the above prohibition when certain criteria are met:
   1. Confirmation by the UN that transaction will not contribute to Irans’s nuclear program
   2. Appropriate end-use guarantees in contract
   3. Commitment by Iran not to use transaction for nuclear program
5. A freeze in funds or assets controlled by individuals or entities listed in Annex IV and Annex V

Penalties for violation of the regulations will be set out by individual Member States.

Source:

• Steptoe & Johnson Publications International Law Advisory:
  EU Draft Regulation Implementing Trade Restrictions on Iran March 14, 2007