The removal of sanctions against Iran brings risks for the breakbulk and project cargo sector as well as significant opportunities, according to Norwegian legal specialist Wikborg Rein.
Wikborg Rein analysts predicted that issues such as compliance awareness, procedures, written instructions, contract terms, verification, audit, enforcement and remedy will all require close attention from project cargo contractors prior to engagement in the country.
Another area of potential risk involves “snap-back”, where contracts or subcontracts put in place prior to the sanctions may create legal disputes or delays for new projects.
According to the report from BreakBulk, this is further complicated by the fact that many sanctions will still remain in place despite a widespread softening of trade restrictions. Specifically, sanctions will still apply in full to “U.S. persons” unless an OFAC license is in place potentially making the delivery process difficult for multinational firms.