Beginning in 1995, the United Nations and the United States initiated and have increased economic sanctions against Iran. The comprehensive economic sanctions put in place over the years have effectively blocked, with very few exceptions, the opportunity to do business with Iran. The sanctions are in response to Iran’s nuclear enrichment activities in violation of international agreements. They have had an increasingly debilitating impact on Iran’s economy.
On November 23, 2013, President Obama announced the interim deal concluded with Iran’s recently-elected President Rouhani by six world leaders. Iran has agreed to temporarily stop expanding its nuclear enrichment program and to give access to inspectors from the International Atomic Energy Agency (IAEA). In return Iran is to receive “modest relief” from the sanctions.
What Business Can I Now Do With Iran?
Sanctions will be suspended on trade in gold and precious metals and on Iran’s auto sector and petrochemical exports. Restrictions on Iran’s oil exports, scheduled to tighten if no deal had been reached, will remain at their current levels. Restrictions on the sale of insurance services to Iran were loosened, which should make it easier for Iran to sell its oil. Iran’s aviation industry will be permitted to buy needed airline parts. All other sanctions will continue to be enforced.
Furthermore, the temporary relief will cease if Iran fails to live up to its obligations. A long-term deal is contingent upon Iran’s compliance with this temporary deal and upon continued progress in future negotiations.
In fact, until and unless the U.S. Treasury’s Office of Foreign Assets Control (OFAC) which oversees the U.S. sanctions with Iran has issued a change to its rules, for US companies and their partners with respect to doing business with Iran it’s “business as usual”. It is not advisable to do or to initiate any business with Iran without first obtaining a license from OFAC, or if from another country your relevant authorizing agency.
We invite you to contact us for more information.