EU NEEDS TO BROADEN ITS POLICY ON IRAN
The EU has a genuine interest in a broadening of its policy on Iran. First, and unlike the United States, the EU and its Member States have maintained their ties with the Islamic Republic, working on human rights as much as on economic exchanges, despite an overall strained relationship. Second, the country’s location at the crossroads between Europe, Russia, Central Asia, and South Asia makes it necessary to take into account Iran’s legitimate strategic concerns. Third, the country is a solid state with functioning institutions, an industrial base, and a society imbued by a strong national sentiment. And in spite of repression by the regime, civil society remains strong.
The EU must develop a more comprehensive policy that accounts for both Iran’s role in the region and broader global issues of EU concern.
First the EU should aim to increase outreach to civil society. The promotion of democracy and human rights is central to the EU’s foreign policy identity. The EU should seek to reach out to civil society actors in Iran, focusing on press freedom, labour rights, and Iran’s violations of its own domestic laws and the UN treaties it has signed. In addition, dialogue and engagement should prove fruitful on issues such as technical cooperation on environmental questions, earthquake assistance, and refugees, as well as increased exchanges in sports, culture, religion, science, and higher education.
To achieve these aims, the EU should improve its organisational capacity and step up its presence in the country. The European External Action Service (EEAS) should immediately set up a task force that brings together the different desks currently dealing with Iran. Its aim should be to explore, and later implement, areas of immediate cooperation as well as prepare for longer-term engagement. The task force should encompass all relevant desks, including those outside the EEAS such as the European Commission Directorate General for Trade. An EU special representative should head this Iran task force. In Iran itself, the EU must establish a presence, possibly starting with an EU special representative field office that could be transformed into a fully-fledged EU delegation.
Iran’s pivotal regional role and genuine strategic concerns have to be factored into current efforts to stabilise the Levant and the Gulf and calls for broader terms of engagement.
Effects of the lifting of EU Economic and Financial sanctions
As a result of the lifting of sanctions, the following activities, including associated services, will be allowed, beginning on implementation day, in accordance with the JCPOA and provided that such activities are otherwise consistent with EU and EU Member States’ laws and regulations in effect:
Financial, Banking and Insurance measures
- Transfers of funds between EU persons, entities or bodies, including EU financial and credit institutions, and Iranian persons, entities or bodies, including Iranian financial and credit institutions, without the requirement for authorisation or notification;
- Opening of new branches, subsidiaries or representative offices of Iranian banks in the territories of EU Member States; and the establishment of new joint ventures, or the taking of an ownership interest or the establishment of new correspondent banking relationships by Iranian banks with EU banks; and opening by EU persons, including EU financial and credit institutions, of representative offices, subsidiaries, joint ventures or bank accounts in Iran;
- Provision of insurance or reinsurance to Iran or the Government of Iran, an Iranian legal person, entity or body, or a natural person or a legal person, entity or body acting on their behalf or at their direction;
- Supply of specialised financial messaging services to any Iranian natural or legal persons, entities or bodies
- Entering into commitments by EU Member States to provide financial support for trade with Iran, including the granting of export credits, guarantees or insurance; and into commitments for grants, financial assistance and concessional loans to the Government of Iran; and
- Sale or purchase of public or public-guaranteed bonds to and from Iran, the Government of Iran, the Central Bank of Iran, or Iranian banks and financial institutions or persons acting on their behalf.
Oil, Gas and Petrochemical sectors
- Import, purchase, swap or transport of Iranian crude oil and petroleum products, natural gas or petrochemical products and related financing;
- Sale, supply, transfer or export of equipment or technology, technical assistance, including training, used in the sectors of the oil, gas and petrochemical industries in Iran covering exploration, production and refining of oil and natural gas, including liquefaction of natural gas, to any Iranian person, in or outside Iran, or for use in Iran; and
- Granting of any financial loan or credit to, the acquisition or extension of a participation in, and the creation of any joint venture with, any Iranian person that is engaged in the oil, gas and petrochemical sectors in Iran or outside Iran.
Shipping, Shipbuilding and Transport sectors
- Sale, supply, transfer or export of naval equipment and technology for ship building, maintenance or refit, to Iran or to any Iranian persons engaged in this sector; the design, construction or the participation in the design or construction of cargo vessels and oil tankers for Iran or for Iranian persons; the provision of vessels designed or used for the transport or storage of oil and petrochemical products to Iranian persons, entities or bodies; and the provision of flagging and classification services, including those pertaining to technical specification, registration and identification numbers of any kind, to Iranian oil tankers and cargo vessels;
- Access to the airports under the jurisdiction of EU Member States of all cargo flights operated by Iranian carriers or originating from Iran;
- Cessation of inspection, seizure and disposal by EU Member States of cargoes to and from Iran in their territories with regard to items which are no longer prohibited; and
- Provision of bunkering or ship supply services, or any other servicing of vessels, to Iranian-owned or Iranian-contracted vessels not carrying prohibited items; and the provision of fuel, engineering and maintenance services to Iranian cargo aircraft not carrying prohibited items.
Gold, Other Precious Metals, Banknotes and Coinage
- Sale, supply, purchase, export, transfer or transport of gold and precious metals as well as diamonds, and provision of related brokering, financing and security services, to, from or for the Government of Iran, its public bodies, corporations and agencies, or the Central Bank of Iran; and
- Delivery of newly printed or minted or unissued Iranian denominated banknotes and coinage to, or for the benefit of the Central Bank of Iran.
Metals
Sale, supply, transfer or export of graphite and raw or semi-finished metals, such as aluminum and steel to any Iranian person, entity or body or for use in Iran, in connection with activities consistent with the JCPOA.
Software
- Sale, supply, transfer or export of software for integrating industrial processes, including updates, to any Iranian person, entity or body, or for use in Iran, in connection with activities consistent with this JCPOA,
Listing of Persons, Entities and Bodies (Asset Freeze and Visa Ban)
- As a result of delisting releasing of all funds and economic resources which belong to, and making available funds or economic resources to, the persons, entities and bodies, including Iranian banks and financial institutions, the Central Bank of Iran
- As a result of delisting entry into, or transit through the territories of EU Member States of individuals.
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