U.S. SANCTIONS LIFTED AFTER IRAN MEETS NUCLEAR ENERGY OBLIGATIONS
February 11, 2016
The United States and Europe have lifted economic sanctions against Iran, releasing approximately $100 billion worth of assets after inspectors from the International Atomic Energy Agency (IAEA) concluded Iran had followed through on agreements to dismantle large sections of its atomic energy program by 2016. The lifting of sanctions will have several immediate consequences, including opening up Iranian access to international trade markets and financial systems, as well as lifting the ban on sales of U.S-sourced aircraft and aircraft parts to Iranian civil aviation operators. More specifically, the agreement allows for the export, re-export, sale, lease, or transfer to Iran of commercial passenger aircraft and related parts, as well as other services, such as warranty, maintenance, repair and safety-related inspections as long as they are for commercial aviation purposes only. The announcement is set to largely benefit large aircraft manufacturers such as Airbus and Boeing, as Iranian air operators prepare to place orders for up to 400 commercial aircraft needed to supplement current aircraft in need of replacement or repair. Although direct passenger travel from the U.S. continues to be restricted, further negotiations are expected to take place in the future. Similarly, Canada has announced intentions to lift its economic sanctions against Iran, allowing for the sale of aircraft and aircraft parts by Canadian manufacturer Bombardier Aerospace, and European aircraft manufacturer Airbus Instrustrie has announced orders for over one hundred aircraft, including its A380 super jumbo jet to Iranian national airline Iran Air.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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