US warns Iran sanctions still in place

Reminds govts not to ‘get ahead’ of themselves

WASHINGTON/ LONDON: The Obama administration has privately reminded foreign governments and US bankers that sanctions against Iran remain in effect, cautioning against a rush by Western companies to invest in Iran’s oil industry and other businesses until the country fully complies with the July nuclear agreement.

The US State Department recently cabled a message, known as a demarche, to embassies around the world to reiterate that sanctions on Iran are still in place, diplomatic and government sources told Reuters.

The demarche stressed that sanctions on Iran would not be lifted until the International Atomic Energy Agency verifies that Tehran has complied with the terms of the deal. “The United States wants to tell governments not to get ahead of themselves when dealing with Iran,” said a London-based diplomatic source.

It is uncertain exactly when the layers of Western sanctions might be lifted, but experts have said some international financial transactions with Iran would be possible sometime next year if Iran is found in compliance.

US law allows the administration to enforce sanctions by targeting financial institutions in countries that do business with the state-owned National Iranian Oil Company or its subsidiaries. Companies that breach the sanctions risk fines, asset freezes and being cut off from the US dollar banking system.

In 2014, the US imposed a record fine on French bank BNP Paribas, which agreed to pay almost $9 billion to resolve accusations of violating US sanctions against Sudan, Cuba and Iran.

According to the London-based diplomatic source, Iran’s decision last month to postpone a key oil conference in London for the fourth time came after US officials conveyed concerns to British diplomats that the December 14 event would take place before the easing of sanctions. It is now planned for February 2016.

Published in The Express Tribune, October 11^th, 2015.

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