U.S. flag

An official website of the United States government

614. What does E.O. 13846 do with respect to Iran’s energy, petroleum, and petrochemical sectors?

Answer

E.O. 13846 reimposes sanctions previously set out in E.O.s 13622, 13628, and 13645 with respect to the Iranian energy, petroleum, and petrochemical sectors. As such, subsections 1(a)(ii) and (2)(a)(ii) of E.O. 13846 authorize blocking sanctions and correspondent or payable-through account sanctions on persons providing material support for, or goods or services to, NIOC or NICO. Separately, subsection 2(a)(iii) of E.O. 13846 authorizes the imposition of correspondent or payable-through account sanctions on an FFI determined to have knowingly conducted or facilitated any significant financial transaction with NIOC or NICO (except for sales of refined petroleum products to NIOC or NICO that are below the dollar threshold that could trigger sanctions under section 5(a)(3)(A)(i) of ISA). Subsections 2(a)(iv)-(a)(v) provide authority to impose sanctions on FFIs determined to have knowingly conducted or facilitated a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum, petroleum products, or petrochemicals from Iran, with the aim of deterring Iran or any other country or institution from establishing workaround payment mechanisms for the purchase of Iranian oil to circumvent the NDAA 2012 oil sanctions. Subsections 3(a)(ii)-(a)(iii) provide authority to impose menu-based sanctions or persons determined to have engaged in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran. Furthermore, persons that sell, supply, or transfer to or from Iran significant goods or services used in connection with Iran’s energy sector are exposed to menu-based sanctions pursuant to subsection 1244(d) of IFCA and section 5 of E.O. 13846 The existing exception rules under NDAA 2012 apply to these sanctions. Thus, countries that are determined by the Secretary of State to have significantly reduced their purchases of Iranian crude oil will be excepted from these measures as well. (See FAQs 169-182 relating to the NDAA 2012 sanctions.)

The provisions in E.O. 13846 reimposing these sanctions come into effect beginning on November 5, 2018.

Date Released
August 6, 2018