Report to Congress on Renewal of Iraq's Sanctions Waiver for Electricity Payments
Pursuant to Section 1245(d)(5) of the National Defensrese Authorization Act for Fiscal Year 2012, as amended (FY 2012 NDAA), the Secretary of State, in consultation with the Secretary of the Treasury, has determined that it is in the national security interest of the United States to waive for 120 days the imposition of sanctions under Section 1245(d)(1) of FY 2012 NDAA with respect to the Trade Bank of Iraq (TBI) to the extent necessary for TBI to engage in financial transactions denominated in Iraqi dinar or euro with Central Bank of Iran in connection with the electricity purchase from Tavanir, and for TBI and financial institutions in certain third-country jurisdictions to transfer funds to restricted accounts. Pursuant to Sections 1244(i) and 1247(f) of the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA), the Secretary...
1) This is a rare unpublished “Report to Congress” concerning the granting of a secondary sanctions waiver. Compare Report to Congress on Provision of Pipe-Laying Vessels and Activities for Certain Russian Energy Export Pipelines (PEESA).
2) BACKGROUND
Tavanir is an electricity company owned by the Government of Iran (GOI), but as of the date of the issuance of the waiver it was not included on the SDN list. The National Iranian Gas Company, also referenced in the waiver, is a GOI-owned entity that did not appear on the SDN list. Here, the transactions at issue involve the non-sanctioned Trade Bank of Iraq (a “foreign financial institution”) (FFI) being involved in transactions with the “Central Bank of Iran in connection with the purchase of electricity from Tavanir”. As of the...