IRAN SANCTIONS - New EU restrictions regarding crude oil and petroleum/petrochemical products (EU COUNCIL REGULATION 267/2012)
27 March 2012
Further to our News Alert of 9th February 2012, the EU Regulation which implements the restrictions proposed in the EU Decision of 23rd January 2012 was published on 24th March 2012. The EU Regulation has immediate effect and a copy of the EU Regulation can be found by clicking here.
A. In addition to the cargoes prohibited in the previous EU Regulation (EU Regulation 961/10), the transportation of crude oil and petroleum/petrochemical products is now also prohibited. Definitions of what amounts to petroleum/petrochemical products can be found in Annex IV and V of the Regulation.
C. The restrictions apply not only to the carriage of these cargoes into the EU but also to the carriage to any country worldwide.
E. The EU Regulation applies to EU nationals and any legal person, entity or body inside or outside the EU which is incorporated or constituted under the law of an EU Member State and/or to any business done in whole or in part within the EU.
F. The EU Regulation provides for a limited grace period but the following important additional restrictions apply during the grace period:
- The transportation needs to be executed before 1st July 2012 (for crude oil and petroleum products) and before 1st May 2012 (for petrochemical products).
- The transportation must be pursuant to a contract of carriage concluded before 23rd January 2012 or pursuant to a contract of carriage which is ancillary to a trade contract concluded before 23rd January 2012. Accordingly, Members to whom the Regulation applies and who still wish to transport these cargoes during the grace period need to satisfy themselves that the transportation is pursuant to a contract of carriage concluded before 23rd January 2012 or that the transportation is necessary for the execution of a trade contract concluded before 23rd January 2012.
- EU Members who have concluded after 23rd January 2012 contracts of carriage for crude oil or petroleum/petrochemical products from or originating from Iran but who have not yet satisfied themselves that the underlying trade contract was concluded before 23rd January 2012 are at risk and may have to seek legal advice on whether they can still perform the contracted carriage. EU Members will have to notify, at least 20 days in advance, the proposed transportation to the competent authority of the Member State in which the Member is established (further details can be found in Annex X of the Regulation).