Restrictive measures against Iran: implications for P&I cover

Louise Lazarou, Registered European Lawyer (UK)

Council Regulation (EU) No 267/2012 of 23 March 2012 prohibits insurers whose principal place of business is located within the EU from providing third party liability insurance and environmental cover, in relation to the purchase, import or transport of Iranian crude oil, petrochemical and petroleum products or to vessels carrying Iranian bunker stems. The latest EU sanctions were implemented in an attempt to impede Iran’s alleged nuclear programme which is believed to be funded primarily through revenues generated by the export of crude oil, petroleum and petrochemical products. The prohibition on the provision of marine insurance by insurers located within the EU area, or through non-EU insurers who are reinsured by EU reinsurers, in respect of vessels carrying sanctioned cargoes effectively bans P&I Clubs in the International Group of P&I Clubs from providing third party liability insurance in this regard.