EU bans all cargo handling by Iranian shipping line

European Union foreign ministers have agreed to ban all cargo handling by Islamic Republic of Iran Shipping Lines in EU territory as part of a new round of sanctions in response to Teheran’s nuclear programme.

The ban is expected to affect Malta Freeport where IRISL traffic accounts to between five and 10 per cent of the turnover of trans-shipment cargo. Iran’s shipping line also provides important links for domestic (local Maltese market) imports and exports to and from South East Asia, the Middle East and a number of Mediterranean ports.

Existing contracts with IRISL, however, will not be affected, so the ban is not expected to have an immediate effect on Malta or other EU countries doing business with the Iranian shipping line.

Foreign Minister Tonio Borg, who attended the EU foreign ministers’ meeting in Luxembourg when the decision was taken on Monday, said the EU Council of Ministers had decided to go for the ban as a result of the United Nations’ sanctions against Iran, imposed last June.

“The Council of Ministers unanimously approved the UN implementing protocol of the sanctions against Iran. Some of these sanctions are targeted at IRISL, the Iranian shipping line, which has been identified by the United Nations as having breached UN sanctions on a number of occasions, so much so that the UN imposed a freeze on its financial assets and economic resources.

“The Council of Ministers interpreted this freeze as one that also includes all cargo handling by IRISL. The Council expressly excluded all existing contracts with IRISL from these sanctions until the date they expire,” Dr Borg said.

The loading and unloading of IRISL ships in EU ports will be illegal, according to the regulation approved by EU foreign ministers. “It shall be prohibited,” the regulation states, “to load or unload cargo on and from vessels owned or chartered by IRISL or by such entities in ports of member states.”

Last July, the EU imposed new restrictions on Iran in the areas of foreign trade, financial services and the oil and gas sectors and gave the go ahead for increased inspections of Iranian vessels. More than 40 individuals and 50 companies were blacklisted as a result of the EU sanctions.

However, the EU had decided against a ban of IRISL operating in EU territory, even though this was originally considered. Dr Borg had said the EU measures against Iran were a compromise between the member states.

So far, economic sanctions have not stopped Iran from continuing with its nuclear programme and its enrichment of uranium, which Teheran insists is for peaceful purposes.

The United States has its own unilateral trade, travel and financial sanctions against Iran.