UN sanctions on Iran set to be reinstated

Stacy Keenof Pinsent Masons was commenting after France, Germany and the UK initiated a process that could lead to the reinstatement of UN sanctions that previously applied to Iran.

UN sanctions on Iran were lifted in 2016 after the country signed a ‘joint comprehensive plan of action’ (JCPoA) in 2015 in tandem with the US, China, Russia, UK, France, Germany and the EU, under which it committed to a series of actions limiting its nuclear and weapons programs.

Under the suite of UN sanctions applicable to Iran, global businesses were banned from exporting nuclear materials to the country, or from providing banking, insurance and other financial services to Iranian entities. The sanctions package also included arms trade restrictions and asset freezes.

While some countries have unilaterally decided to maintain some sanctions in respect of Iran subsequently, by signing up to the JCPoA, Iran obtained relief from the UN sanctions package. The other side of the bargain required it to implement, among other things, strict limitations around uranium enrichment and oversight of its nuclear activities by the International Atomic Energy Agency (IAEA).

In January 2020, France, Germany and the UK, known as the E3, triggered the dispute resolution procedures in the JCPoA following the announcement by Iran that it would no longer comply with the JCPoA restrictions on the number of nuclear centrifuges in use for uranium enrichment and other "enrichment-related matters".

The triggering of the dispute mechanism by the E3 followed the US’ exit from the JCPoA in 2018 and the reinstatement of the US sanctions that had been lifted under the agreement. The US withdrew from the JCPoA under Donald Trump’s presidency – he believed the agreement was too lenient on Iran. However, for their part at the time, the E3 reiterated their commitment to preserving the JCPoA, issuing a joint statement in which they said the decision was not intended to implement maximum pressure against Iran but rather to bring the country back into full compliance with the terms of the JCPoA.

Now, however, the E3 said their position has changed.

In a joint statement, issued on 28 August, the E3 said: “Today, Iran’s non-compliance with the JCPoA is clear and deliberate, and sites of major proliferation concern in Iran are outside of IAEA monitoring. Iran has no civilian justification for its high enriched uranium stockpile – now over nine Significant Quantities – which is also unaccounted for by the IAEA. Its nuclear programme therefore remains a clear threat to international peace and security.”

The E3 said they have decided to trigger a so-called ‘snapback’ process provided for in the 2015 UN Resolution 2231 that formalised and endorsed the JCPoA.

Keen said: “The snapback mechanism under the Iran nuclear deal is a tool designed to swiftly reimpose UN sanctions on Iran if it significantly violates the terms of the agreement. Any participant to the deal – the UK, France, Germany, Russia, China or, formerly, the US – can trigger the process. Once triggered, the usual veto powers of permanent UN Security Council members – including Russia and China – are bypassed.”

Russia, Iran and China have reportedly sent a joint letter to the UN, denouncing the snapback attempt as an abuse of the UN Security Council’s authority.

The triggering of the snapback process means the UN Security Council has until 27 September to pass a fresh resolution to continue providing UN sanctions relief to Iran, failing which the previously imposed sanctions will be reinstated.

Keen said: “The timing of triggering the process is likely to have been driven by the expiry of the snapback provision on 18 October 2025. If snapback had not been triggered before that date, reinstatement of sanctions would have required consensus by the permanent Security Council members, which is unlikely due to Russia and China’s support for Iran.”

The E3, which proposed an extension of UN Resolution 2231 in July, said: “We will use the 30-day [snapback process] period to continue to engage with Iran on our extension offer, or on any serious diplomatic efforts to restore Iran’s compliance with its commitments.”  

Stéphane Dujarric, UN spokesperson, said: “The Secretary-General urges the JCPoA participants and the Security Council to continue negotiations to find a diplomatic solution that ensures the peaceful nature of the Iranian nuclear programme and brings about economic benefits to the people of Iran.”