Iran: Adoption Day of the Joint Comprehensive Plan of Action

by Reed Smith
Contact

On 14 July 2015, the Joint Comprehensive Plan of Action (JCPOA) was agreed between the E3/EU+3 (or the P5+1, comprising the United States, Russia, China, the United Kingdom, France and Germany), together with Iran. This was set out in our client alert below of 15 July 2015.

Under the JCPOA, actions and commitments regarding the lifting of sanctions against Iran are due to be carried out in accordance with the timeline and detailed arrangements specified in the JCPOA.

In accordance with the JCPOA (and being 90 days after the parties agreed the JCPOA), 18 October 2015 marked ‘Adoption Day’. On Adoption Day, the JCPOA becomes effective and the JCPOA participants begin to make the necessary arrangements and preparations for implementing their JCPOA commitments.

There is no immediate change to the sanctions position; rather, the only easing of sanctions in effect continues to be that provided for under the JPOA of 24 November 2013 as extended. These measures were considered in detail in our client alert below of 23 January 2014.

Joint statement by EU High Representative and Iranian Foreign Minister: The joint statement issued by the EU High Representative Federica Mogherini and the Iranian Foreign Minister Javad Zarif describes their continued commitment to the JCPOA: “We have respected the timetable set out in the JCPOA, which demonstrates our collective will to stick to its provisions […] All sides remain strongly committed to ensuring that implementation of the Joint Comprehensive Plan of Action can start as soon as possible. To this end, we will make all the necessary preparations.”

EU Position On 18 October 2015, the EU published the following documents, which set out the legislative framework for lifting the EU nuclear-related economic and financial sanctions on Iran:

When effective, Regulation 1861 terminates certain provisions of Regulation (EU) No 267/2012, as amended. This covers sanctions and restrictive measures in areas including:

  • Transfers of funds between EU and Iranian persons and entities (including financial institutions
  • Banking activities
  • The provision of insurance and reinsurance
  • Financial support for trade with Iran
  • The import and transport of Iranian oil, petroleum products, gas and petrochemical products; the export of key equipment and technology for and investment in these sectors
  • The export of graphite, raw or semi-finished metals
  • The export of key naval equipment and technology, the design and construction of cargo vessels and oil tankers, and the provision of flagging and classification services

When effective, Regulation 1862 removes the designation of 331 entities and individuals subject to an asset freeze and/or visa ban, set out in Regulation (EU) No 267/2012, as part of the staged de-listing of those designated under the EU nuclear-related sanctions programme.

Both Regulations will only apply from the “date on which the Council has noted that the Director-General of the IAEA has presented a report to the IAEA Board of Governors and to the UN Security Council which confirms that Iran has taken the measures” specified in the JCPOA, in other words, ‘Implementation Day’ of the JCPOA.

The commitment to lift all EU nuclear-related sanctions in accordance with the JCPOA is “without prejudice to the dispute resolution mechanism specified in the JCPOA and to the reintroduction of EU sanctions in case of significant non-performance by Iran of its commitments under the JCPOA”. However, the EU makes clear in its Decision that if EU sanctions are reintroduced, adequate protection for the execution of contracts concluded in accordance with the JCPOA will be provided consistent with previous provisions when sanctions were originally imposed.

U.S. Position The Department of the Treasury’s Office of Foreign Asset Control (OFAC) announced that in connection with Adoption Day, President Obama has issued a memorandum directing the U.S. Secretary of State, the Secretary of the Treasury, the Secretary of Commerce, and the Secretary of Energy to take all appropriate preparatory measures to ensure the prompt and effective implementation of the U.S. commitments set forth in the JCPOA upon Iran’s fulfillment of the requisite conditions.

In addition, the Secretary of State has issued contingent waivers of certain statutory sanctions provisions with respect to the Iran Secondary Sanctions. These waivers are not currently in effect and will only take effect on Implementation Day. The waivers relate to various provisions of the Iran Threat Reduction and Syria Human Rights Act of 2012, the Iran Freedom and Counter Proliferation Act, and National Defense Authorization Act for FY 2012.

Immediate next steps The latest measures adopted on Adoption Day make the necessary legal preparations for sanctions to be lifted on Implementation Day, when the IAEA verifies that Iran has met its own obligations under the deal.

Only once this has occurred will the lifting of sanctions as specified in the JCPOA take place. Currently, there is no specification as to a timeframe within which Implementation Day will or must occur.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Written by:

Reed Smith
Contact
more
less

Reed Smith on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.