Dr Alexandra Fowler, Lecturer in International Law, wrote an article for The Conversation about how Nazanin Zaghari-Ratcliffe’s release from Iran, where she has been detained for five years, may depend on the UK repaying its debts to Iran and whether it can lawfully pay.
Discussing whether the UK can lawfully pay its debts to Iran, Dr Fowler wrote: “As far as the UK and payment of the outstanding £400 million is concerned, it needs to ensure what it does complies with general non-proliferation obligations particularly given Iran’s policy to continue uranium enrichment and missile testing.
“There are also other UN sanctions on Iran related to human rights. The legislation passed by the UK after Brexit to replace the EU’s sanctions regime thus sets out a lengthy list of entities and individuals still subject to bans, and Iran’s defence ministry (MODAFL) and many Iranian defence-related entities are on this list. Under these rules, making any funds or economic resources available, either directly or indirectly, to such persons is prohibited. As the £400 million is owed to MODAFL, payment would be unlawful.”
Discussing secondary sanctions, she added: “US sanctions law contains exceptions allowing foreign financial institutions to conduct or facilitate transfers of agricultural commodities or humanitarian items without penalty. The regulations also allow foreign governments and financial institutions to receive written confirmation in advance that they will not attract US sanctions in relation to the transfer of such good in exchange for them committing to provide ‘robust information…on a monthly basis.”
She added: “Legally, this would allow the UK to transfer the £400 million in the form of humanitarian goods, but there have been several credible reports of exempted trade not going ahead for fear of US sanctions.”
Read the full article on The Conversation’s website.
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