'Implementation Day' Marks Rollback of Significant Nuclear-Related Sanctions on Iran

Secondary Sanctions in Certain Sectors

The U.S. government rolled back certain nuclear-related “secondary sanctions” on Iran: 1) as applied to non-U.S. persons and entities; and 2) with respect to the eight business categories listed below. These secondary sanctions applied even to non-U.S. entities that were not owned or controlled by a U.S. person and that were outside OFAC's jurisdiction. Although such entities could not be penalized in an enforcement action, they faced other sanctions such as being denied access to the U.S. financial system. Under the JCPOA, non-U.S. persons, including U.S.-owned or -controlled foreign entities, are now eligible to participate in transactions or activities subject to the sanctions lifting under the JCPOA only to the extent that the transactions or activities are exempt from regulation or authorized by OFAC. Specifically, the United States lifted the following eight categories of secondary sanctions as related to Iran:

1. Financial and banking-related activities;
2. Underwriting services, insurance or re-insurance;
3. Energy and petrochemicals;
4. Shipping, shipbuilding and port operators;
5. Gold and other precious metals;
6. Graphite, metals and software for integrating industrial processes;
7. Automotive sector; and
8. Sanctions on associated services for each of the categories above.

Accordingly, for example, a Swiss corporation may purchase, sell, transport or market petroleum, petrochemical products and natural gas from Iran, including transactions with the National Iranian Oil Company (NIOC). A Swiss subsidiary of a U.S. company may also engage in transactions with Iran's energy sector, provided the U.S. parent is not involved in the Iran-related operations or decision-making, as explained further below.