The EU’s Iranian Oil Ban Is Now in Force -

Not a drop of Iranian oil or petroleum can now be brought into the EU legally. The European ban on imports from the world’s third largest oil exporter, which was agreed at the end of January to put pressure on Tehran to suspend its nuclear programme, came into effect on Sunday 1 July. The ban extends the measures already applied to the petrochemical sector and as a result the EU will be foregoing access to around 600,000 barrels of Iranian crude per day. The EU’s ban has affected both the price of crude, which has fallen by 21% since March 2012 to just under $90 per barrel, and Iranian exports, which have fallen by around 40% over the last six months.

What Does This Mean for Your Business -

Up until the 1 July 2012 European companies had been able to take advantage of the exemptions provided under Article 12 of Council Regulation (EU) No 267/2012 (“the Regulation”) which covered contracts concluded before the 23 January 2012 and executed by the 1 July (For further information on Council Regulation (EU) No 267/2012 see our February 2012 DechertOnPoint). These exemptions covered the importation, purchase, transportation and financing of crude oil or petroleum products originating in Iran or exported from Iran.