International sanctions on Iran will be lifted on 16 January, when the United Nations nuclear agency declares Tehran has complied with an agreement to scale back its nuclear programme, Iran’s foreign minister said. Foreign Minister Javad Zarif arrived in Vienna, headquarters of the International Atomic Energy Agency (IAEA), the UN body expected to issue a report triggering the lifting of sanctions imposed by the UN, US and European Union.
The report, if issued, would mark the consummation of the 14 July 2015 nuclear agreement. Under the deal, Iran agreed to shrink its atomic programme in exchange for the lifting of some sanctions, which would allow billions of dollars of investment to flow into the country.
“Well according to JCPOA (the nuclear deal), immediately after the release of the report by the IAEA verifying Iran’s implementation, we have the implementation day, so we expect to have the implementation day today,” Zarif said.
Sanctions on Iran
Nuclear sanctions have been in place since 2006, on top of other sanctions stretching back decades:
- The economic sanctions being lifted now were imposed progressively by the US, EU and UN in response to Iran’s nuclear programme
- The EU is lifting in full restrictions on trade, shipping and insurance
- The US is suspending, not terminating, its nuclear-related sanctions; crucially, Iran can now reconnect to the global banking system
- The UN is lifting sanctions related to defence and nuclear technology sales, as well as an asset freeze on key individuals and companies
- Non-nuclear US economic sanctions remain in place, notably the ban on US citizens and companies trading with Iran, and US and EU sanctions on Iranians accused of sponsoring terrorism remain in place
A flurry of Iranian economic activity is anticipated:
- Nearly $100bn (£70bn) of Iranian assets are being unlocked
- Iran is expected to increase its daily export of 1.1m barrels of crude oil by 500,000 shortly, and a further 500,000 thereafter
- Iran is reportedly poised to buy 114 new passenger planes from the Airbus consortium
What it means for Iran’s economy and world markets
UN, US and EU sanctions have hit Iran hard for years.
Mr Rouhani said everyone was happy with the deal, apart from those he described as warmongers in the region – Israel and hardliners in the US Congress.
“We Iranians have reached out to the world in a sign of friendliness, and leaving behind the enmities, suspicions and plots, have opened a new chapter in the relations of Iran with the world,” he said in a statement to the nation on Sunday morning.
The lifting of sanctions was “a turning point” for Iran’s economy, he added, saying the country needed to be less reliant on oil revenues.