An interim agreement to provide limited sanctions relief to Iran has been reached (24 November 2013) with the US, France, Russia, China, UK and Germany.

During a six month period, in return for Iran taking several steps to limit the progress of its nuclear programme, certain US and EU economic sanctions on Iran will be lifted.

The interim agreement

• does not lift the broadest US or EU sanctions on Iran,
• or any of the UN sanctions on Iran.

The primary impact of the sanctions relief is likely to be the ability of the Iranian government to access more freely and use US$4.2 billion in crude oil sale proceeds currently on deposit at banks in countries purchasing Iranian crude oil.

The sanctions to be lifted are those relating to:

• the Iranian automotive sector, imposed by the US and EU in 2013;
• transactions involving Iranian-origin petrochemical, and related financial, insurance or transportation services imposed by the US and EU in 2012;
• transactions with Iran involving gold or other precious metals, imposed by the US and EU in 2013;
• the export to Iran of goods and services for civil aviation;
• the raising of the thresholds above which certain Iran related-payments to the EU require approval by the relevant Member State; and
• the Iranian government’s access to proceeds from the sale of Iranian crude oil, up to a capped amount of US$4.2 billion agreed by the parties.

Going forward, the seven countries will seek to work out a more comprehensive resolution of international concerns relating to Iran’s nuclear programme.

If this is achieved, there will be a phased lifting of essentially all of the US and EU sanctions on Iran. If this is not possible, the interim sanctions relief will be revoked.

Copies of the agreement; President Obama’s statement; and a related fact sheet issued by the White House are available.

Copies of the agreement; http://online.wsj.com/public/resources/documents/iranpact_11242013.pdf
President Obama’s statement;  http://m.whitehouse.gov/the-press-office/2013/11/23/statement-president-first-step-agreement-irans-nuclear-program
related fact sheet issued by the White House. http://www.c-span.org/uploadedfiles/Content/Documents/White_House_Iran_Fact_Sheet_112313.pdf