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US Sanctions to Intensify European Woes for Insuring Iran Trade

US Sanctions to Intensify European Woes for Insuring Iran TradeUS Sanctions to Intensify European Woes for Insuring Iran Trade

New US sanctions are likely to prevent the use of a Lloyd’s of London IT platform for any Iran insurance, adding to difficulties for European insurers providing cover for the country.
European insurers, reinsurers, brokers and shipping firms have been winding down Iranian business, as the United States reimposes sanctions on insurance and reinsurance from Nov. 4 after withdrawing from a nuclear deal with Iran in May, Reuters reported.
Lloyd’s of London and other European insurers provided marine, energy and trade credit cover for Iran after the United States lifted secondary sanctions in January 2016 following a nuclear deal between world powers and Iran reached in 2015. The European Union also lifted sanctions in January 2016.
Lifting secondary sanctions meant European firms could trade with Iran without being penalized by the United States. It also allowed foreign subsidiaries of US firms to trade with Iran.

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