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EU Council Implementing Regulation No. 668/2010 and Council Decision of 26 July 2010 Concerning Restrictive Measures against Iran

July 2010


The imposition of sanctions against Iran is constantly changing.  As indicated in the Appendix to Club Circular entitled "Iranian Sanctions Orders and Restrictions on Club Cover" : B.519  and L.129, the Council of the European Union had announced that it would be implementing new restrictive measures with respect to Iran that would go beyond those required under the United Nations Security Council Resolution 1929 dated 9th June 2010 ("UNSCR 1929").

These new measures are set out in the form of (i) EU Council Decision dated 26th July 2010, and (ii) EU Council Implementing Regulation No. 668/2010.


The effect of this Regulation is to add certain persons, entities and bodies fulfilling the conditions laid down in Article 7 of Regulation EC No. 423/2007 to the list of persons and entities whose assets should be frozen.

Article 7 of Regulation EC No. 423/2007 provides:

Article 7 (2) “All funds and economic resources belonging to, owned, held or controlled by the persons, entities and bodies listed in Annex V shall be frozen…”

Article 7 (3) No funds or economic resources shall be made available directly or indirectly, to or for the benefit of the natural or legal persons, entities or bodies listed in Annexes IV and V.

Article 7 (4) The participation knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to circumvent the measures referred to in Paragraphs 1, 2 and 3 (above) shall be prohibited.”

Regulation EC No. 423/2007 applies

(a)   within the territory of the Community;

(b)  on board any aircraft or vessel under the jurisdiction of a Member State;

(c)   to any person inside or outside the territory of the Community who is a national of a Member State;

(d)  to any legal person, entity, or body which is incorporated or constituted under the law of a Member Sate.

(e)   To any legal person, entity or body in respect of any business done in whole or in part within the Community.

The list of additional designated persons is set out in the Annex to Council Regulation 668/2010 and includes various shipping companies and financial institutions.

Regulation 668/2010 and the entities listed in the Annex are subject to EU financial sanctions in respect of Iran with immediate effect. The United Kingdom Treasury ("HMT") has published a Notice concerning Regulation 668/2010 including full details of the newly designated persons. The notice and consolidated list of financial sanctions targets appears on the HMT website and can be accessed via the following link

EU Council Decision 2010

This Decision largely implements the measures outlined in UNSCR 1929. These include:

  • Article 1 - a ban on the importation of prohibited materials, including arms and related material of all types, into Iran which could contribute to Iran’s nuclear-proliferation activities or development of other weapons of mass destruction and which could include dual use goods and technology.
  • Article 4 – a ban on the supply, sale or transfer of key equipment and technology for key sectors of the oil and natural gas industry in Iran, or to Iranian or Iranian-owned enterprises engaged in those sectors outside Iran, including refining, LNG, exploration or production. 
  • Article 12 - a ban on the provision of insurance and reinsurance to the Government of Iran, or to entities incorporated in Iran or subject to Iran’s jurisdiction, or to any individuals or entities acting on their behalf or at their direction, or to entities owned or controlled by them, including through illicit means. It is also forbidden to participate knowingly or intentionally in activities the object or effect of which is to circumvent this prohibition.
  • Article 15.1 - inspection of all cargoes to and from Iran in the territory of EU Member States if there are reasonable grounds to believe the cargo contains prohibited items.
  • Article 15.2 - inspections of vessels on the high seas with the consent of the flag state if there are reasonable grounds to believe the vessels carry prohibited items.
  • Article 15.5 - in cases where cargoes are seized following an inspection carried out pursuant to Articles 15.1 or 15.2, Member States are to dispose of such cargoes at the expense of the importer or of any other person or entity responsible for the attempted illicit supply, sale, transfer or export in accordance with national legislation. The possibility of ship owners, charterers, operators and managers being held liable for the costs involved in the seizure and disposal of these cargoes cannot be ruled out.
  • Article 15.6 - a ban on the provision by EU nationals or from their territory of bunkering, ship supply or other services to Iranian-owned or -contracted vessels if there are reasonable grounds to believe such vessels are carrying prohibited items.
  • Article 20 - all funds and economic resources belonging to, held or controlled, whether directly or indirectly, by any of the individuals and entities listed in the annexes specified in Article 20 are frozen.  It is also forbidden to make funds or economic resources, whether directly or indirectly, available to those individuals and entities

 In addition to the above provisions, the EU Decision also confirms the fully binding nature of UN Security Council Resolution 1929, and specifically

  • Urges Member States to exercise vigilance when doing business with entities incorporated in Iran or subject to Iran’s jurisdiction if they have reasonable grounds to believe such business could contribute to Iran’s proliferation-sensitive nuclear activities, or the development of nuclear weapon delivery systems, or violations of UNSCR resolutions.
  • Bans the sale, supply or transfer to Iran of key equipment and technology as well as related technical and financial assistance which could be used in key sectors in the oil and natural gas industries. Member States should prohibit any new investment in these sectors in Iran. 

The Managers are advised that the Decision of the European Council is directed at Member States and that further Regulations may be issued in the near future. Domestic legislation in a Member State may be required to implement the provisions of the Decision. 

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pdf file type
pdf file type
HMT GUIDANCE NOTICE 27 JULY 2010.pdf (3.90 MB)