Sanctions against some Iranian exports – including ammonia and urea – are being eased under an agreement between the P5+1 and the Iranian government. The deal took effect Jan. 20 as Iran began opening its nuclear facilities for inspection and promises that it would not seek or develop nuclear weapons. The P5+1 — the United States, United Kingdom, Germany, France, Russia, and China, coordinated by EU High Representative Catherine Ashton — reached a deal with Iran Jan. 12 to take effect Jan. 20. The Western countries agreed to a six-month easing of sanctions on a variety of goods and services, including Iranian petrochemicals. According to the U.S. Treasury Department guidelines, petrochemical products from Iran include aromatic, olefin, and synthesis gas along with their derivatives, including ammonia and urea. All deals must be signed and concluded before the end of the temporary relief of sanctions program, July 20, 2014. U.S. companies and individuals will continue to be banned from directly engaging in the trade or purchase of the newly released items. The only exception is related to humanitarian goods.
Along with the temporary lifting of the sanctions, the Treasury Department released the names of the Iranian companies that are no longer subject to sanctions. The following 14 companies are the only ones that may participate in exports of Iranian petrochemical products:
- Bandar Imam Petrochemical Company
- Bou Ali Sina Petrochemical Company
- Ghaed Bassir Petrochemical Products Company
- Iran Petrochemical Commercial Company
- Jam Petrochemical Company
- Marjan Petrochemical Company
- Mobin Petrochemical Company
- National Petrochemical Company
- Nouri Petrochemical Company
- Pars Petrochemical Company
- Sadaf Petrochemical Assaluyeh Company
- Shahid Tondgooyan Petrochemical Company
- Shazand Petrochemical Company
- Tabriz Petrochemical Company
Restrictions on financing have also been eased.
The temporary lifting of sanctions also allows Iranian depository institutions to handle financing for the exports. Under the Treasury Department guidelines, that means “any entity (including foreign branches), wherever located, organized under the laws of Iran or any jurisdiction within Iran, or owned or controlled by the Government of Iran, or in Iran, or owned or controlled by any of the foregoing, that is engaged primarily in the business of banking (for example, banks, savings banks, savings associations, credit unions, trust companies, and bank holding companies)” may be used for the deals.
The full resource page on the sanctions against Iran and how those sanctions have changed can be found at http://www.treasury.gov/resource-center/sanctions/Programs/pages/iran.aspx.
A page with the most common questions about the changes in the sanctions is available at http://www.treasury.gov/resource-center/sanctions/Programs/Documents/jpoa_faqs.pdf