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Lifting economic sanctions on Iran

28.01.2016

The Iranian market is gradually opening up to foreign goods and capital after years of strict economic sanctions. Iran has been under two separate regimes of sanctions – one related to their nuclear program and the other to their human rights situation. On 7 July 2015, the European Union and Iran signed a Joint Comprehensive Plan of Action, according to which the sanction regime based on Iran’s nuclear program will be wound up in the coming years.

On 16 January 2016, the so called “Implementation Day”, an important step was taken; the IAEA confirmed that Iran has fulfilled its initial obligations under the Plan of Action regarding its nuclear program, leading to the lifting of economic sanctions. The plan is that all sanctions related to the nuclear program will be lifted by 2025 (the so called “Termination Day”).

Finnish companies have a long history of doing business in Iran. According to the Finnish Ministry of Foreign Affairs, Finland and Finnish companies have a comparatively good reputation Iran, but it is safe to say that the competition among western countries will be hard on the Iranian market following the lifting of the sanctions.

It should be noted, however, that all sanctions have not been and will not be lifted based on the current Plan of Action. Exporting companies are always responsible for and must make sure that all export control regulations are followed. It follows that companies should contact the Ministry of Foreign Affairs and/or their legal advisor well in advance before entering into supply agreements to make sure all obligations are complied with.

 


For further information, please contact:
Petri Kyllönen

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