15 Restrictive measures against Iran:
nuclear issues
| Committee's assessment
| Politically important |
| Committee's decision | Cleared from scrutiny; drawn to the attention of the Foreign Affairs Committee
|
| Document details | Council Decision concerning restrictive measures against Iran
|
| Legal base | Article 29 TEU; unanimity
|
| Department
Document number
| Foreign and Commonwealth Office
(36529), —
|
Summary and Committee's conclusions
15.1 This Council Decision extends the suspension of restrictive
measures specified in the Joint Plan of Action, agreed between
the E3+3 and Iran, from 24 November 2014 until 30 June 2015.
15.2 On 24 November 2013 in Geneva, the Foreign Ministers
of the E3+3 (China, France, Germany, Russia, the United Kingdom
and the United States), supported by the EU High Representative,
reached an agreement with Iran — the Joint Plan of Action.
The 17 January 2014 EEAS Fact Sheet on the negotiations describes
the Joint Plan of Action thus:
"The Joint Plan of Action is an interim
agreement setting out an approach towards reaching a long-term
comprehensive solution. As a first step, it includes the implementation,
by both sides, of a series of voluntary measures, for a duration
of six months. This first step could be renewed by mutual agreement.
"A Joint Commission of the E3/EU+3 and Iran
will be established to monitor the implementation of these measures,
with the IAEA responsible for the verification of nuclear-related
measures. The Joint Plan of Action also includes elements for
the final step — i.e. the common goal of reaching a final,
comprehensive solution which would lead to the full resolution
of the international community's concerns about Iran's nuclear
programme, along with UN Security Council resolutions."[40]
15.3 The E3+3 and Iran agreed in the early hours
of 19 July to extend the JPoA for a further four months until
24 November, i.e., the anniversary of agreement on the JPoA. At
that time, the Minister for Europe (Mr David Lidington) explained
that, under the extension, both sides would continue to implement
all measures agreed under the Geneva interim deal that had not
yet expired, which meant that the limited sanctions relief under
the JPoA would remain in place until 24 November 2014. The Minister
hoped that this would provide the additional time needed to conclude
an agreement, and continued to believe that a deal was still possible:
but reaching an agreement would be "challenging", and
it was "vital both sides continue efforts to reach a comprehensive
deal as soon as possible". [41]
15.4 The Minister also noted that, in addition to
these measures, Iran had committed to convert an agreed amount
of uranium oxide into fuel for the Tehran Research Reactor and
to dilute its UF6 enriched up to 2% into natural uranium: in return,
the E3+3 had committed to enable the repatriation of $2.8 billion
in instalments over the course of the four-month extension period;
the IAEA will continue to be responsible for verification of all
nuclear-related measures; no additional sanctions had been suspended;
all other EU sanctions and restrictions remained in place and
in force, and the Government's position remained not to encourage
trade with Iran. In order to achieve a comprehensive solution,
Iran would have to "show more flexibility and have more realistic
expectations — given our concerns about break out —
about the future scope of its nuclear programme, in particular
on the core issue of enrichment"; all parties would now "need
to reflect and evaluate the best way forward"; they would
reconvene in the coming weeks "with the clear determination
to reach agreement on a Joint Comprehensive Plan of Action by
24 November".
15.5 This did not happen: hence this seven-month
extension. The Minister now says:
"A deal between the E3+3 and Iran, on Iran's
nuclear programme, remains in all our interests. It is the best
way to ensure that Iran cannot obtain a nuclear weapon. We have,
to date, made significant progress and through successive rounds
of talks we have closed the gap on a number of important issues.
Importantly all parties remain committed to a comprehensive agreement.
But despite the efforts of all parties more time is needed to
bridge differences — particularly on the core issue of Iran's
enrichment capacity. We have therefore agreed an extension to
the Joint Plan of Action until 30 June 2015 and negotiations will
continue with an aim of securing an agreement as soon as possible.
The restrictions on Iran's nuclear programme imposed under the
existing Joint Plan of Action will continue. In return, the EU
and US will continue suspension of certain limited and specific
sanctions measures and Iran will receive instalments of previously
restricted oil revenues of $700 million a month.
"We would have preferred a comprehensive
deal. But only the right deal. In the meantime, the interim agreement
maintains important constraints on Iran's programme and the vast
majority of nuclear-related sanctions remain in place".
"We believe a deal is still possible. A
comprehensive, lasting deal is in all our interests. For the international
community it would mean reassurance that Iran's nuclear programme
is exclusively peaceful. For Iran, a deal would bring significant
economic benefits".
15.6 As before, time alone will demonstrate whether
the way forward outlined by the then High Representative and the
Iranian Foreign Minister in their joint statement of 24 November
can be brought to fruition (see paragraph 14.20 below for full
details).
15.7 In the meantime, we clear this Council Decision,
noting that interested Members can pursue the questions that will
no doubt arise over the next seven months via the many means at
their disposal.
15.8 We are also again drawing this chapter of
our Report to the attention of the Foreign Affairs Committee.
15.9 In the circumstances, and on this occasion,
we do not object to the Minister having overridden scrutiny.
Full
details of the document:
Council Decision 2014/829/CFSP of 25 November 2014 amending Decision
2010/413/CFSP concerning restrictive measures against Iran: (36529),
—.
Background
15.10 As the Committee's previous Reports illustrate
in detail, the EU has been engaged since December 2006 in a "dual
track" strategy — with both engagement and restrictive
measures — regarding Iran's nuclear activities, not simply
implementing in the EU, but also strengthening in that context,
successive UN Security Council Resolutions (UNSCRs).
15.11 UNSCR 1929 of 9 June 2010 imposed a number
of further restrictive measures which in broad terms:
— reaffirmed
that Iran shall cooperate fully with the IAEA;
— banned new Iranian nuclear facilities
and banned Iranian nuclear investment in third countries;
— banned exports of several major categories
of arms, and further restricted Iran's ballistic missile programme;
— froze the assets of 40 entities, including
one bank subsidiary, several Islamic Revolutionary Guard Corps
companies, and three Islamic Republic of Iran Shipping Lines subsidiaries,
which had been involved in multiple sanctions violations cases;
— froze the assets of, and banned travel
by, one senior nuclear scientist;
— implemented a regime for inspecting suspected
illicit cargoes and authorising their seizure and disposal;
— placed restrictions on financial services,
including insurance and reinsurance, where there was suspicion
of a proliferation link;
— banned existing and new correspondent
banking relationships where there were proliferation concerns;
— established a Panel of Experts to advise
and assist on sanctions implementation; and
— reaffirmed the dual track strategy (of
pressure and diplomacy).
Council Decision 2010/413/CFSP
15.12 As well as implementing the measures contained
in UNSCR 1929, the EU imposed additional EU sanctions in the following
areas:
— the
energy sector, including the prohibition of investment,
technical assistance and transfers of technologies, equipment
and service;
— the financial sector, including
additional asset freezes against banks and restrictions on banking
and insurance;
— trade, including a broad ranging
ban on dual use goods and trade insurance;
— the Iranian transport sector in
particular the Islamic Republic of Iran Shipping Line (IRISL)
and its subsidiaries and air cargo; and
— new visa bans and asset freezes,
especially on the Islamic Revolutionary Guard Corps (IRGC).
15.13 Council Decision 2010/413/CFSP was adopted
by the 26 July 2010 Foreign Affairs Council, together with a Regulation
(Council Regulation (EU) 961/2010) extending the list of entities
and individuals subject to an assets freeze.
15.14 A further package of EU sanctions was adopted
by the 15 October 2012 Foreign Affairs Council. The Committee
cleared the relevant Council Decision on 31 October 2012. The
Council Regulation required to implement the October package was
adopted on 21 December 2012. It includes:
· Finance:
a financial cut-off, prohibiting all but specifically licensed
trade with a notification system for humanitarian payments up
to €100,000 and other payments (€40,000); a full listing
of the Central Bank of Iran except to permit channels for the
provision of liquidity and repayment of debts; a full ban on the
public provision of export credit guarantees (adding short term
to the already prohibited medium and long term);
· Energy
sector: a gas embargo: a further ban
on exporting equipment for the Iranian Energy Sector; a ban on
construction of oil tankers;
· Trade:
bans on exporting graphite and metals that can be used in Iran's
nuclear programme; naval equipment for ship building and maintenance;
software for integrating industrial processes;
· Transport:
bans on the flagging and classification of Iranian oil tankers
and cargo vessels; and on the leasing/chartering of vessels for
the transport or storage of Iranian oil; and
· New
Designations: the Council Decision and
Council Implementing Regulation imposed an asset freeze on further
Iranian companies and updated the entries for three already listed
entities.[42]
15.15 In his Explanatory Memorandum of 6 August 2014,
the Minister for Europe recalled that the Joint Plan of Action
(JPoA) was agreed by the E3+3 and Iran in November 2013 and implementation
began on 20 January 2014. He continued as follows:
"The first step measures included in the
JPoA were that Iran would halt all key aspects of its nuclear
programme, and in some cases roll it back. Specifically, the agreement
sets out that as a first step Iran would:
· "Eradicate
stockpile of 20% enriched uranium in its most concerning form
(UF6) (currently 196 KG) by diluting half (to less than 5% enriched)
and converting half to oxide;
· "Suspend
above 5% enrichment everywhere in Iran, including at Natanz and
Fordow;
· "Not
install further centrifuges at Natanz, and will only replace existing
centrifuges with centrifuges of the same type (i.e. not install
or bring into operation advanced centrifuges);
· "Not
produce centrifuges, except to replace damaged existing machines
(and only replace like-for-like);
· "Limit
the stockpile of less than 5% enriched uranium in its most concerning
form (UF6) by converting newly enriched UF6 into oxide;
· "Not
establish new locations for enrichment;
· "Halt
fuel production for the Heavy Water Research Reactor at Arak (which
could potentially offer Iran a plutonium route to a bomb) and
not install remaining components (i.e. control room equipment;
refuelling machine; and reactor cooling pumps);
· "Not
develop a reprocessing facility (i.e. to extract plutonium);
· "Allow
enhanced monitoring and transparency (which includes some of the
requirements under the Additional Protocol) of its nuclear
facilities.
"In return, the US and EU agreed proportionate
and meaningful sanctions relief, although the bulk of the sanctions
measures remained in place. In summary:
· "The
US will pause efforts to reduce crude oil sales to Iran's oil
customers;
· "The
US will agree to repatriate an amount to be agreed amount of oil
revenue held abroad;
· "The
EU and US will suspend oil-related insurance and transport costs.
(i.e. EU's P&I measures);
· "The
EU and US will suspend sanctions on petrochemical exports; and
sanctions on imports of gold and precious metals;
· "The
US will suspend sanctions on the auto industry; and allow licensing
on the civil aviation sector;
· "No
new nuclear-related sanctions to be implemented by the UN, EU
and US Administration;
· "The
US will establish a financial channel to facilitate humanitarian
and legitimate trade, including for payments to international
organisations, and for Iranians studying abroad;
· "The
EU will increase the thresholds for authorisation of financial
transactions for humanitarian and non-sanctioned trade."
15.16 The Minister then recalled that these measure
were suspended for six months — from 20 January 2014 to
20 July 2014 — to allow time for comprehensive negotiations
on the Iranian nuclear issue.[43]
15.17 The Minister then said that both sides had
worked hard on a draft text, but more time was needed to bridge
the differences that remained, in particular on enrichment, and
to agree the details of how an agreement would be implemented;
it was hoped that extending the JPoA for a further four months
until 24 November, one year after the JPoA was agreed, would provide
the additional time needed to conclude an agreement. The Government
believed that a deal was still possible — hence its agreement
to an extension —but reaching an agreement would be challenging.
Under the extension, both sides would continue to implement all
measures agreed under the Geneva interim deal that had not yet
expired; the limited sanctions relief under the JPoA would accordingly
remain in place until 24 November 2014.
15.18 The Minister concluded by noting that the draft
Council Decision was agreed by written procedure on Monday 21
July 2014, and that he had had to agree to the adoption of this
Council Decision before the Committee had had an opportunity to
scrutinise it.
15.19 The Committee thanked the Minister for his
comprehensive explanation; cleared the Council Decision —
noting that interested Members could pursue the questions that
would no doubt arise over the next six months via the many means
at their disposal — drew these developments to the attention
of the Foreign Affairs Committee; and in the circumstances, and
on this occasion, did not object to the Minister having overridden
scrutiny.[44]
15.20 On 24 November 2014, then EU High Representative
Catherine Ashton and Iranian Foreign Minister Mohammad Javad Zarif
issued the following statement:
"Since we agreed to the Joint Plan of Action
one year ago in Geneva, we, together with the Foreign Ministers
and Political Directors of the E3+3 (China, France, Germany, Russia,
the United Kingdom and the United States), have been engaged in
intensive diplomatic negotiations aimed at reaching a comprehensive
solution.
"We once again express our appreciation
to the Austrian Government for their most generous support in
hosting these negotiations in Vienna.
"Based on the strong commitment by all sides
to reach a mutually-agreed long-term comprehensive solution, we
have held ten rounds of negotiations and numerous meetings during
the past months. Some ideas have been developed, but given the
technical nature of this effort and the decisions needed, more
work is required to assess and finalize them as appropriate.
"We would have preferred to finalize a comprehensive
solution here in Vienna. But we remain convinced that, based on
the progress made and on the new ideas which continue to be explored,
there is a credible path through which a comprehensive solution
can be reached.
"We, together with the Foreign Ministers
of the E3+3, have therefore agreed to continue our diplomatic
efforts. We have decided to extend the measures of the Joint Plan
of Action to allow for further negotiations until June 30th. We
intend to build on the current momentum in order to complete these
negotiations within the shortest possible time, up to four months,
and if necessary to use the remaining time until the end of June
to finalize any possible remaining technical and drafting work.
Iran and the E3/EU+3 reaffirm that they will continue to implement
all their commitments described in the Joint Plan of Action in
an efficient and timely manner. The IAEA will be asked to continue
monitoring the voluntary measures under the Joint Plan of Action.
"The next meeting to continue our work will
happen in December."[45]
The Council Decision
15.21 This Council Decision extends the suspension
of restrictive measures specified in the Joint Plan of Action,
agreed between the E3+3 and Iran, until 30 June 2015.
15.22 In his Explanatory Memorandum of 3 December
2014, the Minister outlines the original JPoA as set out above.
The Government's view
15.23 The Government's view is outlined in paragraph
14.5 above. In a letter of 3 December 2014, as well as making
the last of the points quoted above, the Minister also says that:
"given that negotiations went down to the
wire, and the sensitivity of the agreement, the need for the override
of scrutiny on this occasion is regrettably unavoidable."
Previous Committee Reports
None, but see Ninth Report HC 219-ix (2014-15), chapter
41 (3 September 2014); also see (35964), — and (35965),
—: Forty-seventh Report HC 86-xlii (2012-13), chapter
11 (30 April 2014) and (35712), 18163/13: Thirty-first Report
HC 83-xxviii (2013-14), chapter 15 (22 January 2014), and
the earlier Reports referred to therein.
40 See http://eeas.europa.eu/statements/docs/2013/131219_02_en.pdf. Back
41
See the "Background" section of this chapter of our
Report for full information on the EU sanctions regime against
Iran and the changes brought in earlier this year. Back
42
For the full background, see the European External Action Service
(EEAS) fact sheet on the European Union and Iran http://eeas.europa.eu/statements/docs/2013/131219_04_en.pdf. Back
43
The Committee cleared the relevant Council Decision on 22 January
2014: see (35712) 18163/13: Thirty-first Report HC 83-xxviii (2013-14),
chapter 15 (22 January 2014) for full background. Back
44
See Ninth Report HC 219-ix (2014-15), chapter 41 (3 September
2014). Back
45
See the Joint Statement. Back
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