The UK Government supports sanctions-compliant trade with Iran and encourages UK businesses to take advantage of the commercial opportunities.
This is the main message of new guidance, produced by the Treasury, the Department for Business and Trade (DBT), the Office of Trade Sanctions Implementation and the Export Control Joint Unit, which highlights opportunities in most sectors, but particularly in agriculture, healthcare and food and drink.
The guide, which can be found HERE, emphasises that, while UK law permits trade with Iran, companies must comply with UK and UN sanctions and UK export controls. Trade is also restricted with certain individuals and entities who are designated under the UK sanctions regimes.
United States’ primary sanctions on Iran remain in place, the guide warns.
This means UK companies should consider their US connections, including the presence of employees holding US citizenship or green cards, before undertaking Iran-related activity. Companies employing US citizens should be mindful of the regulations applying to them.
Notwithstanding these drawbacks, however, the Government argues that the advantages should not be overlooked, including Iran having the second largest population in the Middle East (after Egypt), its highly educated workforce, strategic location and plentiful natural resources.
The guide also explains how the UK Protection of Trading Interests (PTI) legislation protects UK businesses from laws and sanctions with extraterritorial effects, including US secondary sanctions on Iran.
It goes into considerable detail with regard to export controls and the risks and challenges of doing business in Iran.
The Government makes it clear that UK Export Finance (UKEF) will offer cover to support UK companies seeking to compete for business in Iran but warns that Iran is ranked low (149th of 180 countries) in the Corruption Perceptions Index, meaning there is significant public sector corruption perceived.
