Although the repeal of pre-existing sanctions is good news for those wanting to do business with Iran, restrictions still apply. As a practical matter, banks and financial institutions have been nervous about committing themselves to support transactions with Iran, whether as service providers, financiers or simply moving money.
While many more transactions can now be undertaken with Iran, there are still obstacles to be overcome in facilitating investment and capital flows in what is, for foreign investors, very much an emerging and high-risk market, wrote British magazine the Hedge Fund Journal, a monthly publication focusing on the European hedge fund industry.
Since the announcement last year that sanctions were likely to be lifted, Simmons & Simmons has been advising clients on how to position themselves for the removal of sanctions and what business can be done in Iran prior to their being lifted, using Simmons & Simmons’ sanctions team and the dedicated capability of its overseas network, particularly in the Middle East.
The restructuring of the Sturgeon Central Asia Fund allowed Simmons & Simmons’ client, Sturgeon Capital, to commence investment in Iran in a manner that complied with pre-existing sanctions, giving it a head-start and positioning it for liberalization, Financial Tribune reported.
Commenting on the launch of the fund, partner Dale Gabbert said, “We are pleased to have helped Sturgeon Capital launch an Iran-focused fund product immediately prior to the lifting of sanctions, so that they are amongst the first to benefit from the growth story as that market opens.”
Taco Sieburgh Sjoerdsma, compliance director of Sturgeon Capital, continued: “Simmons & Simmons’ help has been invaluable in constructing a comprehensive sanctions policy for our firm and complying with regulations in multiple jurisdictions. They have proven themselves to be a strong partner in what was and remains a complex legislative framework with a myriad of unforeseen implementation problems”
The Simmons & Simmons team was led by funds partner Dale Gabbert with assistance from funds associate, Claire Barnes, along with partner and sanctions specialist, Stephen Gentle.

In a meeting with Slovakia’s Deputy Prime Minister Peter Kažimír, Seif proposed the establishment of a joint committee to help pave the way for establishing correspondent banking relations and a joint account between the two central banks, the CBI website reported.
Seif pointed to the lifting of sanctions on Iran’s banking system and said, “As the sanctions fade Iranian lenders are willing to start joint banks with their Slovak counterparts.”
Sanctions against Iran were lifted at the weekend as the nuclear deal with the US and five other world powers was officially implemented.
“Slovak banks are welcome in Iran. Establishing representative offices, opening branches or buying up to 40% of Iranian banks’ shares are among the possibilities for Slovak lenders and other investors,” Seif said, Financial Tribune reported.
Seif also asked the Slovak deputy premier to restore Iran’s credit rating at Slovakia’s central bank to the pre-sanctions level.
Kazimir welcomed Seif’s proposal to establish a joint account between the two central banks saying Bratislava is ready for closer banking collaboration with Iran.
“We have signed a MoU with the Export Guarantee Fund of Iran which is a good step forward for increasing trade between the two nations.”

Regional banks are likely to lead the way on business deals. Banks from the UAE, Oman, Qatar and Kuwait have spent months drawing up plans for entering the Iranian market, two sources familiar with the matter said, Reuters reported Wednesday.
“Regional institutions will test the water and other foreign banks will watch to see what happens,” said Stuart Jones Jr., an executive director at EY and a former US Treasury attaché to the Middle East.
“There are certain regional institutions taking legal advice to manage very real risks associated with doing business with Iran.”
Emirates NBD (ENBD), Dubai’s largest lender, has in recent months met with the Iranian business community in Dubai and discussed potential banking opportunities involving Iran once the sanctions are lifted, the two sources said.
ENBD said its lawyers were reviewing the sanctions changes but would not be making any changes to its policies yet.
“Any reengagement with Iran will take place in several stages and will require updates to policies, procedures, systems and controls as well as ongoing communication with regulators and correspondent banks,” the bank said in a statement, adding it did not currently have any material assets or liabilities in Iran.
ENBD and Qatar National Bank (QNB), the Middle East’s largest bank, have representative offices in Tehran, but ENBD’s has not been operational since 2008. The status of QNB’s office is unclear and the bank did not respond to a request to comment on its Iran plans.
The UAE is Iran’s fourth largest trading partner, home to a large number of ethnic Iranians and a channel for consumer goods imports into that country. But that relationship has been dented by sanctions and a spat between Iran and Saudi Arabia.

Huge Potential
Aside from trade finance, wealth management and project finance are seen as potential sweet spots for banks entering Iran, though some banks will be wary of their checkered history of Iranian business dealings.
Commerzbank and Deutsche Bank are among several international banks fined in the past for violating U.S. sanctions. Commerzbank is nevertheless looking into Iran.
“Commerzbank is monitoring the development very closely and is reviewing a possible adjustment of its policy (of doing business with Iran),” a spokeswoman said.
Other western lenders are more cautious though.
“Deutsche Bank will, for the time being, stick to its decision of withholding from doing business connected to Iran,” a spokesman said, according to Financial Tribune.
“Foreign banks considering establishing a subsidiary in Iran will in most cases require a partnership with a local entity unless they set up in one of a handful of free zones,” said Nicholas Gilani, senior partner at Arjan Capital, a consultancy advising on Iran business.
Since Saturday’s deal, many Iranian banks are in the process of being switched back into the SWIFT financial message system, a key to them reentering the international financial network.
The Dubai office of consultancy Promontory Financial Group, which advised several global banks on sanctions compliance, has received a flood of inquiries from lenders since Sunday including from the Persian Gulf, Lebanon and Turkey.
“They are very interested, but very cautious,” said Walid Alameddine, Promontory boss for the Middle East and Turkey.
Another complication is that banks and businesses will not be able to use US correspondent banks for clearing or settling any Iranian business deals.

The Chinese official said Qeshm is the best choice for tight cooperation with China and they should use their capacity for promotion of economic objectives.
He said Qeshm, enjoying high advantages and being located on Hormuz Strait strategic location, enjoys especial importance for industrialist and entrepreneurs of China.
He hoped that growing economic and industrial exchanges will bring more income and expedite economic development of the two countries.

The statement said that Georgian Foreign Ministry believes that the move will open up new opportunities to the region and the world in general.
It said Georgia also welcomes diplomatic efforts for implementation of the Joint Comprehensive Plan of Action (JCPOA) based on the report of the International Atomic Energy Agency (IAEA).

Skourletis met Iran’s Deputy Oil Minister Amir Hossein Zamaninia in Athens.
‘They (Iran) are positively disposed towards and think that Greece can be the European conduit for them to re-enter the market,’ Skourletis told Reuters.
Hellenic Petroleum, Greece’s biggest oil refiner, was a major buyer of Iranian crude, which accounted for about 20 percent of its annual crude oil imports before sanctions were imposed.

The document highlights R&D cooperation, development of ICT infrastructures and cooperation in satellite.
The document signing precedes visit of Chinese President’s Iran visit tonight.

Jakab told Vice-Speaker of Majlis Mohammad-Hassan Abutorabifard that the structure and framework of mutual cooperation in the future need to be drawn up and confirmed by the two sides.
He urged mutual cooperation in agriculture, livestock breeding and seafood farming.
He also called for more scientific and cultural cooperation between the two sides.

Pakseresht told IRNA that Pramudwinai will during his stay in Iran take part in the mutual cooperation commission session, whose Iranian chairman will be Minister of Industries, Mines and Trade, Mohammad-Reza Nematzadeh.
The 7th and 8th Iran-Thailand Joint Cooperation Commission sessions were held in Tehran and Bangkok in 2004 and 2010 respectively.
Pakseresht said the first Thai delegation visited Tehran after the JCPOA inking in December.
He said that in the 9th commission session in Tehran on Saturday, the two sides will prepare drafts of commercial protocols for oil and energy, transportation, tourism and development cooperation and the documents will be signed in next few days once Thai deputy prime minister Somkid Jatusripitak visits Iran at the head of a 200-member delegation.

Speaking to Managing Director of the Social Security Organization, Seyed Taqi Nourbakhsh,
in Tehran on Friday, Chassagne said his company tries to facilitate investment in Iran and have close and dynamic cooperation with the Social Security Organization of Iran.
He said Iran is now a very strong and big market in the region and even all over the world.
He added that heavy sanctions has inflicted abundant pressure on Iran economy but eye-catching progress has taken place in the country compared to the past.
He noted that Iran has now experienced engineers and exceptional industries, managing to stand on its feet in the years of sanction.
He announced that his company is now active in investment in the oil and gas sectors and establishing oil platforms both onshore and offshore. The priority of
Prezioso Linjebygg company is educating and recruiting domestic forces in implementation of projects as it has similar expertise in various countries like Angola, South Africa and Mozambique.
Nourbakhsh said for his part that his Organization consists big economic sections. The Social Security Organization covers more than 40 million of Iranian population and its insurance system is based on the DB insurance advantages.
He added that the Organization produces 40 percent of the national need to medicine.