Hurdles for Iran

Banking, Finance, Legal, Markets, News, Trade and Commerce — By on October 19, 2016 at 4:59 PM
Azadeh Meskarian

Azadeh Meskarian

A year on from the joint comprehensive plan of action

It is now a year on since the historic Joint Comprehensive Plan of Action (“JCPOA”) between Iran and E3/EU+3.  Although both the Iranian and the western side of the deal have stood by their obligations there remain serious concerns on the Iranian side as to overall economic and practical achievements of the JCPOA for Iran’s young and highly educated population. Failure of practical relief may call into question the effectiveness of the JCPOA and the practical removal of such widely imposed restrictive measures.

Although significant positive steps and measures have been implemented by both sides, and Iran offers tremendous opportunities in an unprecedented range of sectors, the rate of foreign investment into Iran has been lower than what Iran initially hoped for.

Apart from the political concerns of the upcoming presidential elections in the US and Iran there are various other domestic factors which should be considered by foreign investors and could influence the attraction of direct foreign investment into Iran:

  1. Banking and Financial Channels

Under the terms of the JCPOA, The Implementation Day on 16 January 2016 marked the effective lifting of the majority of restrictive EU measures and the US secondary sanctions (applicable to non-US persons and transactions taking place outside the US jurisdiction). This was followed by detailed guidance from the OFAC of the Department of Treasury, in an attempt to ease the remaining concerns of foreign businesses to enter the Iranian market. However, banks and financial institutions remain hesitant to fully re-engage with Iran.  While the deal was followed by…to read the full article published in the International Finance Magazine, please CLICK HERE.

*Azadeh Meskarian, Solicitor at Zaiwalla & Co LLP. Azadeh.Meskarian@zaiwalla.co.uk Azadeh specialises in Dispute Resolution and Commercial Litigation, Commercial Law and Economic Sanctions. She also works on many Iran related matters.

 

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