Trump Administration Expands Iran Sanctions To New Sectors In Recent Executive Order

Husch Blackwell LLP

In a January 14th Executive Order, President Trump expanded sanctions on Iran after a ballistic missile attack on two American military bases in Iraq. Executive Order 13902 expands secondary sanctions on Iran to capture “significant” or “material” support transactions between non-U.S. persons and Iran’s construction, mining, manufacturing, and textiles sectors. The Executive Order also expands secondary sanctions to non-U.S. financial institutions that facilitate transactions with sanctioned entities and sectors of Iran’s economy.

The January 10th SDN List designations from the Office of Foreign Asset Controls (OFAC) were made under a previous Executive Order covering Iran’s aluminum industry, not the most recent order expanding secondary sanctions. According to an OFAC official, more designations under Executive Order 13902 are to be expected soon. In a recently published Frequently Asked Question (FAQ), OFAC explained that there is a 90-day wind-down period for Executive Order 13902 to allow companies and persons an opportunity to wind-down transactions covered by the expanded sanctions.

Following the expansion of U.S. sanctions on Iran, European Union (EU) member states including the United Kingdom, Germany, and France triggered the dispute mechanism of the Joint Comprehensive Plan of Action (JCPOA), as the Iran Nuclear Deal is officially titled, in response to Iran’s apparent disregard for the terms of the agreement, such as enriching uranium and installing centrifuges beyond the allowed limit. While the EU member states are trying to save the JCPOA, triggering of the dispute mechanism might ultimately lead to the reimplementation of United Nations (UN) sanctions on Iran if Iran does not comply.

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.

© Husch Blackwell LLP | Attorney Advertising

Written by:

Husch Blackwell LLP

Husch Blackwell LLP on:

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:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.