Between 2020-2023

Project value: 3,000,000 EUR

Sanctions imposed by the US, UN, and EU against Iran, for its nuclear programme, met legitimate security objectives. However, such wide-ranging sanctions also had unintended consequences, such as distorting legitimate trade by creating trade and investment barriers in those sectors and stakeholders which were not the intended target of the sanctions. For example, US unilateral sanctions against Iran, curtailed almost all legitimate trade between the EU and Iran, because EU based banks de-facto ceased all EU-Iran financial transactions for all sectors, under the US sanctions regime. By curtailing access to safe consumer products, notably spare parts for domestic aircraft, innocent civilians were put at risk. As part of the Joint Comprehensive Plan of Action (JCPoA), the EU aimed to protect and promote legitimate trade, investment and business opportunities for EU firms dealing with Iranian counterparts.

The launching of the Due Diligence (DD) Helpdesk for EU SMEs Dealing with Iran was one of a series of measures to prevent sanctions from acting as an indiscriminate barrier to Fair Trade and Competition or distorting legitimate trade within value chains. The objective of the Helpdesk was to encourage and facilitate EU SMEs to increase exports to Iran and work with European banks and financial institutions to facilitate eventual financial transactions facilitated through INSTEX. This was achieved by facilitating trade in priority sectors, such as healthcare, agriculture, education, gender and minority groups, or those SMEs, NGO, civil society, contributing to the promotion of regional economic sustainability and to peruse SDGs at the same time.

 The project carried out Capacity building and institutional strengthening (via webinars and policy papers) for EU Financial institutions and trade and sector associations, highlighting the importance of keeping legitimate trade and investment channels with Iran open. The DD Helpdesk provides first-line advice to eligible EU SMEs on conducting due diligence and business background checks when concluding a transaction with an Iranian counterpart. The DD Helpdesk works with European SMEs to collect and verify the portfolio of documentation necessary to conclude a due diligence check of the Iranian entity and its compliance (non-subjugation) to EU restrictive measures. At a primary level, the service provides a self-assessment tool for EU SMEs to identify the level of risk of the transaction which they consider proceeding with. This self-assessment is complemented by a documentary checklist, whereby the EU SME enters their information and that of the Iranian entity through an online interface that then creates a case with the project’s due diligence team. 

A key component of the project supported the initiatives of EU Member state embassies in Iran, to provide case work to ensure that trade channels between their member state SMEs and Iran remained open, reducing the significant barriers which were otherwise in place. European SME using the service in instances where Iranian counterparts are reticent to share the necessary documents. The Helpdesk is active in organizing webinars, trainings, representation at trade fairs, newsletters, and other communications and social media activities to increase the visibility of the service and understanding of Iran as a prospective export destination.

Website: http://www.sanctions-helpdesk.eu/ [the website was closed down upon conclusion of the project]