Sanctions v loan agreements: a borrower's perspective

Author: | Published: 23 Sep 2019

Debevoise & Plimpton lawyers explain what borrowers need to know in today’s political environment

On May 8 2018, the US announced that it would be withdrawing from the Joint Comprehensive Plan of Action (JCPOA) with Iran. On November 5, the US extraterritorial secondary sanctions on Iran relating to banking, shipping, insurance and the petroleum and energy sector, which had previously been suspended by the JCPOA agreement, were re-imposed. The US' extraterritorial secondary sanctions on Iran not only apply to US corporates and individuals, but also to governments, businesses and nationals of third countries with no links to the US. The regime targets activity which is not within US jurisdiction by threatening to impose penalties on any persons who engage in the targeted activity....