Sanctions Update

The US Government and the EU Council have announced that the suspension of certain Iran sanctions which ran from 20 January 2014 to 20 July 2014 is being extended for four months to 24 November 2014.

There is no change to the sanctions relief program other than an extension of the effective time period.

Members are reminded of the Sanctions Limitation and Exclusion Rule 3.9. Under that Rule the Association cannot provide insurance, pay a claim or provide any other benefit which results in the Association being in breach of any sanction made by resolution of the United Nations or a sanction by either the UK or US governments.

Members who contract to transport cargoes within the scope of the sanctions relief program should bear in mind that after that program ends, the Association will not be permitted to support claims, even where they arose from events during the period of relief.

Unless the period of relief is further extended, Members should assume that beyond 24 November 2014 (or any extension of this further four month period), the Club will not be able to respond to any claims presented in respect of incidents during the 20 January 2014 to 24 November 2014 relief period.

Members and their brokers should contact the Club if they have any queries regarding insurance cover arrangements in relation to such sanctions.

A copy of the notices from the US Government and the EU Council are attached here:

US Guidance
US FAQs
EU Release

Alternatively, they can be downloaded from the following linked websites:

http://www.treasury.gov/resource-center/sanctions/Programs/pages/iran.aspx
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/144071.pdf