Anthony Manduca
Times of Malta, June 23, 2010 – A new set of European Union sanctions against Iran could prohibit the Islamic Republic of Iran Shipping Line (IRISL) from using the Malta Freeport, Foreign Minister Tonio Borg told The Times Business. The sanctions are still being drafted.
In addition to the latest United Nations sanctions against Iran approved by the Security Council two weeks ago, last week’s EU summit agreed to further punitive measures against Teheran over its nuclear programme. The European Council instructed EU foreign ministers not only to adopt the UN measures at their next meeting in July but also to come up with a list of additional sanctions including restrictions on Iran’s transport sector, in particular its shipping line.
At the Malta Freeport the IRISL operates under the name of HDS and accounts for between five and 10 per cent of the Freeport’s turnover of trans-shipment cargo. Iran’s shipping line also provides important links for domestic (local market) imports and export to and from South East Asia, the Middle East and a number of Mediterranean ports.
Dr Borg told The Times Business that while the new EU sanctions will be formally announced by European foreign ministers on July 26, the likelihood is that Iran’s shipping companies will be banned from operating in EU territory.
“Besides transport a number of economic sectors will be targetted by the EU sanctions, which will also include a ban on investments, technical assistance and technology transfers to Iran’s oil and gas industry. A ban on Iran’s shipping line could well affect Malta Freeport, but one has to look at the whole picture. Many European companies will be affected by these sanctions, especially since Iran’s energy sector has been targetted,” Dr Borg said.
The conclusions of last week’s EU summit stated that the European sanctions, in response to Iran’s development of sensitive technologies in support of its nuclear and missile programmes, should focus on a number of economic sectors.
It said: “These should focus on the areas of trade, especially dual use goods and further restrictions on trade insurance; the financial sector, including freeze of additional Iranian banks and restrictions on banking and insurance; the Iranian transport sector, in particular the Islamic Republic of Iran Shipping Line (IRISL) and its subsidiaries and air cargo; key sectors of the gas and oil industry with prohibition of new investment, technical assistance and transfer of technologies, equipment and services related to these areas, in particular related to refining, liquefaction and LNG technology; and new visa bans and asset freezes especially on the Islamic Revolutionary Guard Corps (IRGC)”.
Dr Borg told The Times Business that the latest UN Security Council’s sanctions on Iran, which also include restrictions on IRIS such as in bunkering and financing, will shortly take effect in Malta. The Foreign Ministry has a sanctions committee which oversees the implementation of all international sanctions.