Legal Effects of the International Targeted Sanctions in the Framework of the Security Council Resolutions on Iranian Oil Industry with Emphasis on Procurement

Implementing international smart sanctions against Iran started afterreferring Iranian nuclear program to the Security Council by international Atomic Energy Agency (IAEA) and subsequent corroboration of EuropeanUnion Council, upon which procurement of petroleum industry was sanctioned. Since legal analysis of sanctions on procurement is lacking, this article describes and analyzes the legal effects of the international targeted sanctions in the framework of Security Council resolutions on Iranian oil industry with emphasis on procurement during January 2006 throughout June 2014. Overall, comprehensive sanctions meaningfully restricted access to financial institutions and credit bureaus for signing and implementing oil contracts. In addition, implemented restrictions have potentially exposed procurement contracts with the principles of hardship and force majeure.