Education & Research Institute

Of Iran's Chamber of commerce, industries, mines and agriculture

Register Number : 19720
Training Seminar – Risk Management During Sanctions – 24th July 2019, by Paul – Arthur Luzu

Training Seminar – Risk Management During Sanctions – 24th July 2019, by Paul – Arthur Luzu Mr. Luzu pointed out some steps in regarding business management during sanctions, including: - Sanctions and the risk in business - Preventing the negative effects of sanctions on businesses - How to deal with problems and debates Some sanctions directly block accounts and effect financial issues, but some sanctions have indirect negative effects which raise the question whether to deal with world markets or not? Three questions arise: 1- what sanctions followed the nuclear deal? 2- how does is affect the European market? 3- if the nuclear deal is cancelled, what problems and sanctions will Iran face? In the European Union, most decisions are made in line with the UN. Any new decisions for sanctions will be based on the UN’s procedure. Risk assessment of sanctions in everyday activities – first question – do the sanctions have a negative effect on your activities? This has to do with your European partner, although the sanctions on imposed on your side. Your European partners base their contracts on European laws, and you have to consider what questions they ask themselves in the beginning. In commercial contracts which deal with incoterms, transportation and financial issues, the risks for both sides must be analyzed. Transparency in the contract and eliminating vague points are very important. What is INSTEX? INSTEX is trade exchanging. Iranians have dealt with exchange a lot. The rules of exchange are easy. You want to make a payment, but there are problems preventing you from transferring cash because you don’t know the third party or bank and you have to be patient until your find the appropriate third party or bank. INSTEX works with some countries which own it. But you don’t know if there is a reference which you can carry the operations through that country. This method is currently for pharmaceutical, medical and agricultural companies. INSTEX might become a commercial solution. 10 European counties are currently members of INSTEX.