Trade and banking relations between Pakistan and Iran are set to grow, following the signing of a trade-settlement mechanism between the countries’ central banks. The agreement, signed with the intention of promoting bilateral trade between Pakistan and Iran, was made possible by the lifting of several US sanctions on Iran under the JCPOA last year (see previous blog).
OFAC has sanctioned the Tehran Prisons Organisation and a senior official within Iran’s State Prison Organisation, Sohrab Soleimani, in connection with alleged serious human rights abuses in Tehran’s Evin Prison. Tehran Prisons Organisation, which Soleimani previously headed up and now oversees in his current role, is allegedly responsible for abuses against political prisoners housed in Evin Prison, including an incident in April 2014 in which several political prisoners are said to have been brutally attacked by prison staff. In its press release, the US Treasury said that the US would “vigorously exercise its sanctions authorities outside the scope of the JCPOA to counter the Iranian government’s support for terrorism, ballistic missile programme, regional destabilisation, and human rights abuses”.
ISIL & Al-Qaida
Two ISIL financial facilitators in Libya, Ali al-Safrani and Abd Zarqun, and Algerian ISIL supporter Hamma Hamani have been designated by OFAC as Specially Designated Global Terrorists. Al-Safrani and Abd Zarqun are said to be high-level leaders within ISIL, and Hamani is said to have supported ISIL and trafficked weapons in Libya. The Treasury’s press release is here.
In addition, the US State Department has designated 2 Canadian citizens, Tarek Sakr and Farah Shirdon, as Specially Designated Global Terrorists. Sakr is said to have conducted sniper training in Syria and been linked to Syrian al-Qaida affiliate al-Nusrah Front. Shirdon is allegedly a prominent ISIL fighter and recruiter who has also been involved in fundraising. The State Department’s press release is here.
The European Court of Justice has dismissed the appeal brought by Sharif University of Technology against the General Court’s judgment declining to annul its listing on the EU’s sanctions against Iran (see previous blog). SUT was listed for providing support for the government of Iran. See Case C-385/16 P Sharif University of Technology v Council .
The Court dismissed SUT’s first argument, that the General Court had not considered one of SUT’s grounds for annulment, because the ECJ said the University had not raised it before the General Court. The ECJ upheld the General Court’s interpretation of the listing criterion of providing “support, such as material, logistical, or financial support, to the Government of Iran” as not requiring any connection with Iran’s nuclear activities. It held that the General Court had been correct to find that SUT provided support to the Iranian government for these purposes because it had been involved with the government in military (as opposed to nuclear) or military-related fields, evidenced by agreements between SUT and the government of Iran involving the production of satellites, participation in smart boat competitions, and work for Iran’s air force.
The EU has renewed its human rights sanctions on Iran until 13 April 2018. The sanctions currently impose a travel ban and asset freeze on 82 people and 1 entity, as well as a ban on exports to Iran of equipment which might be used for internal repression or monitoring telecommunications. See Implementing Regulation 2017/685 implementing Regulation 359/2011 and Decision 2017/689 amending Decision 2011/235/CFSP.
US prosecutors have charged Mehmet Atilla, an executive at a state-owned Turkish bank, with conspiring to evade US sanctions on Iran. He is alleged to have conspired with several others, including Turkish businessman Reza Zarrab who was arrested as part of the same investigation in March 2016 (see previous blog) and is due to stand trial in October 2017. Mr Atilla is said to have worked with Mr Zarrab to conceal transfers of currency and gold to Iran from 2010 to 2015, including through the use of fraudulent documents to make the transactions appear as though they involved food that qualified for a humanitarian exemption to US sanctions. In the US Department of Justice’s press release, Acting US Attorney Joon Kim stated that the transactions “illegally funnelled millions of dollars to Iran”.
On Friday, the USA sanctioned 30 people and entities for transferring sensitive technology to Iran for its missile program or for violating export controls on Iran, North Korea and Syria. State Department press release here. The following restrictions apply to them:
- No department or agency of the U.S. Government may procure or contract for any goods, services, or technology from the designated entities, except to the extent the Secretary of State otherwise may determine;
- The designated entities are ineligible for any assistance program of the U.S. Government, except to the extent the Secretary of State otherwise may determine;
- S. Government sales of any item on the U.S. Munitions List to these entities are prohibited, and sales of any defense articles, defense services, or design and construction services controlled under the Arms Export Control Act are terminated; and
- New licenses will be denied, and any existing licenses suspended, for transfers of export- controlled items.
Iran has in return sanctioned 15 US companies for supporting Israel by providing arms and equipment “for use against the Palestinians”. The sanctions bar them from entering into dealings with Iranian firms, and bar current and former directors of the companies from being issued visas to Iran. None are known to have been doing business in Iran.
In light of the substantial lifting of EU sanctions on Iran under the JCPOA nuclear deal signed in 2015, the UK’s Export Control Organisation (ECO) has withdrawn its Iran List. The list provided information about certain entities, companies, and organisations in Iran for exporters concerned about the possible end-use of their goods. In future, exporters may use the end user advice service, which can be accessed via the SPIRE export licensing system.
The ECO’s notice is here.
The General Court of the EU has dismissed another challenge to an EU decision to re-list an Iranian entity that won its challenge to its original sanctions designation. A link to the judgment is here. The Court regularly now upholds decisions to re-list entities on the revised basis that they provide support for the Government of Iran, in circumstances in which the EU could not sustain the original reasons given for their inclusion (usually on the grounds that they support Iran’s nuclear programme).
Bank Tejarat’s original listing was annulled in January 2015 (see previous blog) then it was re-listed in April 2015 (blog here). The General Court has said its re-listing was not unlawful essentially because it was based (inter alia) on the fact that it supports the Iranian Government by offering financial resources and services for oil and gas development projects which is a significant source of Government funding.