Existing sanctions mean little change for Iran deals

Author: Jimmie Franklin | Published: 14 Jan 2020

In spite of recent escalations between the US and Iran, market participants have confirmed that very little has changed for them – for now.

There has been increased concern that the US and Iran are on the brink of a new regional conflict, following the US’ assassination of senior commander Qasem Soleimani in Iran on January 3. However, lawyers have told IFLR that existing sanctions on Iran are already affecting deals in many ways.

"There are very broad prohibitions on US persons being able to do many things in Iran, financial or non-financial," said New York-based Shearman and Sterling counsel Danforth Newcomb. "There are licences but these can burdensome, and regulators are certainly not enthusiastic about issuing them."

Newcomb added that regardless of the financial product, US regulators are generally not sympathetic to Iranian business licences. While there are some specific exceptions such as family remittances, these are limited and not...