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On May 8 2018 US President Donald Trump announced his decision to cease the United States’ participation in the Iran nuclear deal (i.e. not to give further execution to the JCPOA) and to begin re-imposing the U.S. nuclear-related sanctions that were lifted after January 16th 2016 (s.c. Implementation Day).
Therefore, US sanctions that were lifted after the Implementation Day will snap back into place but this will happen only after two wind-down periods of 90 and 180 days during which activities involving Iran and are consistent with the US sanctions relief provided for under the JCPOA will still be allowed.
More precisely the decision to cease the United States’ participation in the Iran nuclear deal has established:
After the 90 day wind down period ends on August 6, 2018 the following activities and sectors will be subject to sanctions again:
Persons engaging in the activities listed above undertaken pursuant to the US sanctions relief provided for in the JCPOA should take the necessary steps to wind down those activities by August 6 2018, to avoid exposure to sanctions or an enforcement action under US-law.
After the 180 day wind down period ends on November 4, 2018 the following sectors, operators and activities will be subject to sanctions again:
Persons engaging in the activities listed above undertaken pursuant to the U.S. sanctions relief provided for in the JCPOA should take the steps necessary to wind down those activities by November 4, 2018, to avoid exposure to sanctions or an enforcement action under U.S. law.
Yes, provided that activities that may be subject to U.S. sanctions again are terminated before the August 6, 2018 or November 4, 2018 (as the case may be).
Yes, but no earlier than November 4, 2018. This is to allow for the orderly wind down by non-U.S., non-Iranian persons of activities that had been undertaken prior to May 8, 2018, consistent with the U.S. sanctions relief provided for under the JCPOA.
No later than November 5, 2018, OFAC expects to move persons identified as meeting the definition of the terms “Government of Iran” or “Iranian financial institution” from the List of Persons Blocked Solely Pursuant to E.O. 13599 (the “E.O. 13599 List”) to the SDN List.
No. However, no later than November 5, 2018, OFAC will re-impose, as appropriate, the sanctions that applied to persons removed from the SDN List and/or other lists maintained by OFAC on January 16, 2016.
Depending on the authority or authorities pursuant to which these actions to re-list are taken, there may be secondary sanctions exposure for parties that engage in certain activities with these persons after their re-listing.
Yes. As long as the payment is due for goods or services fully provided or delivered to an Iranian counterparty prior to August 6, 2018, or November 4, 2018, as applicable, and pursuant to a written contract entered into prior to May 8, 2018.
In this case the U.S. government would allow the non-U.S., non-Iranian person to receive payment also after the wind-down period.
As soon as it is administratively feasible OFAC intends to revoke GL H, which authorized U.S.-owned or -controlled foreign entities to engage in certain activities involving Iran.
OFAC also expects to issue a revised authorization for the wind down of activities involving Iran authorized pursuant to GL H. The wind-down of those activities authorized pursuant to GL H must be completed by November 4, 2018.
Notice of the revocation of GL H and the issuance of the wind-down authorization will be published in the Federal Register.
Yes. To the extent they have not yet expired, OFAC expects to revoke the specific licenses issued pursuant to the JCPOA SLP and issue authorizations to provide for a wind-down period that will end on August 6, 2018.
As soon as is administratively feasible, OFAC intends to revoke GL I, which authorized U.S. persons to enter into, and to engage in transactions that are ordinarily incident to the negotiation of and entry into contingent contracts for activities eligible for authorization under the JCPOA SLP.
OFAC also expects to issue a revised authorization for the wind down of activities involving Iran authorized pursuant to GL I. The wind-down of those activities authorized pursuant to GL H must be completed by August 6, 2018.
Notice of the revocation of GL I and the issuance of the wind-down authorization will be published in the Federal Register.
Massimiliano Perletti
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Valerio Rugge