The European Union sanctions against Iran adopted by EU foreign ministers on Monday are to be reviewed in six months, Foreign Minister Tonio Borg told The Times Business, adding that the sanctions “could go either way” after this period, depending on Iran’s behaviour vis-a-vis its nuclear programme.
In an attempt to block Iran’s nuclear programme which the international community believes is being used to develop nuclear weapons, the EU adopted new restrictions on 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 more than 50 companies are now blacklisted as a result of the EU sanctions
However, the foreign ministers decided against a ban on the Islamic Republic of Iran Shipping Line from operating in EU territory, even though last month’s European Council instructed EU foreign ministers to come up with a list of restrictions on Iran’s transport sector, in particular its shipping line.
Such a ban would have affected the Malta Freeport as the IRISL, which operates in Malta under the name of HDS, accounts for between five and 10 per cent of the Freeport’s turnover of trans-shipment cargo.
Dr Borg said the EU’s measures against Iran were a compromise agreement and that further restrictions on Iran’s shipping line were agreed to, such as increased inspections of its vessels should they be suspected of carrying illegal material.
‘The EU has increased its sanctions on Iran in a number of sectors including shipping. Malta and a number of countries argued that it made more sense to have more stringent inspections of vessels belonging to Iran’s shipping line than to ban these ships from EU territory,” he said.
EU officials have described the measures, which come on top of United Nations sanctions agreed to last month targeted mainly against Iran’s Revolutionary Guard - which controls one-third or more of the economy - as well as additional unilateral US sanctions as “by some way the most far-reaching sanctions adopted by the EU against any country”.
The new EU sanctions were approved in the hope that Iran will resume negotiations about its nuclear activities and stop its enrichment of uranium.
Iran has so far resisted all economic pressures and has said it will continue enriching uranium, which it insists is solely for peaceful purposes. As a result of the EU sanctions any funds, financial assets and economic resources which are in Malta and are owned or controlled directly or indirectly by Iran or persons or companies acting on its behalf shall be immediately frozen and it shall be unlawful for anyone in Malta to make available any funds, financial assets or economic resources to or for the benefit of such persons.
The sanctions against Iranian persons or companies listed in the EU’s Official Journal on Tuesday includes two companies registered in Malta, namely IRISL (Malta) Ltd, Flat 1, 181 Tower Road, Sliema, and Marble Shipping Limited (Malta), 143/1 Tower Road, Sliema.
The reason given for the measures against IRISL (Malta) Ltd is: “Acts on behalf of IRISL in Malta. A joint venture with German and Maltese shareholding. IRISL has been using the Malta route since 2004 and uses the Freeport as a trans-shipment hub between the Persian Gulf and Europe.”
Regarding Marble Shipping Limited (Malta), the EU simply says: “Owned or controlled by IRISL”.