On December 11, 2012, the Department of Foreign Affairs and International Trade released amendments to the Special Economic Measures (Iran) Regulations, implementing new sanctions against Iran.
Among other things, the new regulations prohibit any person in Canada and any Canadian outside of Canada from exporting, selling, supplying or shipping to Iran: any equipment of machinery designed for the building, maintenance or refitting of ships; any vessels designed for the transportation or storage of crude oil, or any petroleum or petrochemicals products; any goods designed for drilling, mineral surveying and exploration, including specialized equipment used in the mining industry; and any specialized equipment used to provide broadcasting, telecommunication, or satellite service to Iran.
The new regulations also prohibit any person in Canada or any Canadian outside of Canada from importing, purchasing, acquiring or shipping natural gas, crude oil, or any petroleum or petrochemical products, from Iran; or to provide marketing or any financial services to Iran or any person in Iran if it is related to natural gas, crude oil, or petroleum or petrochemical products.
Finally, the new regulations also add 98 entities and 1 individual to the list of persons whom people in Canada and Canadians outside of Canada are prohibited from dealing with directly or indirectly.
These new regulations greatly expand sanctions on the economic sectors that Canada believes indirectly support or provide funds for Iran's nuclear program. The activities that persons in Canada and Canadians outside of the country will be able to conduct in relation to oil and gas, mining, metals, and shipping has been greatly constrained and clients who provide, or plan to provide goods or services in this area with Iranian entities should be careful to ensure that they comply with the new regulations.