U.S. sanctions on Iran will force the country to come to the negotiating table but may be permanently damaging U.S. relationships with other trading partners, said James Cartwright, a former vice chairman of the Joint Chiefs of Staff and a current board director for the Atlantic Council.
U.S. sanctions on Iran (see 1907080019) will not lead to a clear outcome, said Sarah Ladislaw, director of the Center for Strategic and International Studies Energy and National Security Program, adding that the U.S.’s failure may leave it without a contingency plan.
As the U.S. and the European Union continue to impose diverging sanctions measures, global businesses are being tasked with increasingly challenging compliance dilemmas, several trade experts said during a July 25 KPMG webinar. Companies are facing more strategic decisions about which countries they can and cannot afford to trade with and are reconsidering multiyear contracts because of the constantly changing sanctions landscape, the experts said.
The Treasury’s Office of Foreign Assets Control issued an advisory on Iran’s “deceptive practices” in the civil aviation industry, detailing Iran’s use of commercial airlines for terrorism, weapons programs and sanctions violations. The eight-page advisory, issued July 23, lists several practices U.S. companies should be aware of to avoid violating U.S. sanctions against Iran. The advisory also reviews the U.S.’s current Iran sanctions regime as well as penalties for committing violations.
An Iranian citizen pleaded guilty to violating the International Emergency Economic Powers Act and Iran sanctions after she tried to illegally export gas turbine parts from the U.S. to Iran, the Department of Justice said in a July 19 press release. Mahin Mojtahedzadeh faces a maximum 20-year prison sentence and $1 million fine when sentenced in November.
The Treasury’s Office of Foreign Assets Control announced sanctions on three Iran-backed Hizballah and Lebanese government officials who helped “bolster Iran’s malign activities,” Treasury said in a July 9 press release. The announcement came two days after the State Department threatened more Iran sanctions in response to the country breaching the enriched uranium limit set in the Joint Comprehensive Plan of Action (see 1907080019).
Iran surpassed the enriched uranium limit that was agreed to as part of the Joint Comprehensive Plan of Action, the country announced July 7, sparking concern from the European Union and threats of additional sanctions by the U.S.
If the Iran nuclear deal collapses and Europe imposes a set of automatic snapback sanctions, the U.S. would likely follow with its own set of additional Iran sanctions, including greater enforcement on non-U.S. entities and sanctions on Iran’s trading partners, said Inessa Owens, a trade lawyer with Baker McKenzie.
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President Donald Trump and the Department of the Treasury announced new Iran sanctions that target the country’s supreme leader and eight senior military officials, the White House said June 24.