Four Weeks of a Weak Deal: Day Fourteen

Snapback Sanctions Part Two

In June of this year, U.S. Ambassador to the UN Samantha Power testified before the House Foreign Affairs Committee:

We will retain the ability to snap back multilateral sanctions architecture back in place, without Russian or Chinese support.

But in Paragraph 37 of the Preamble and General Provisions of the JCPOA, we learn that sanctions, even if they “snap back,” do not apply retroactively to agreements and contracts made in the interim:

JCPOA, Preamble and General Provisions, Paragraph 37

Upon receipt of the notification from the complaining participant, as described above, including a description of the good-faith efforts the participant made to exhaust the dispute resolution process specified in this JCPOA, the UN Security Council, in accordance with its procedures, shall vote on a resolution to continue the sanctions lifting. If the resolution described above has not been adopted within 30 days of notification, then the provisions of the old UN Security Council resolutions would be re-imposed, unless the UN Security Council decides otherwise. In such event, these provisions would not apply with retroactive effect to contracts signed between any party and Iran or Iranian individuals and entities prior to the date of application (emphasis added), provided that the activities contemplated under and execution of such contracts are consistent with this JCPOA and the previous and current UN Security Council resolutions. The UN Security Council, expressing its intention to prevent the reapplication of the provisions if the issue giving rise to the notification is resolved within this period, intends to take into account the views of the States involved in the issue and any opinion on the issue of the Advisory Board. Iran has stated that if sanctions are reinstated in whole or in part, Iran will treat that as gounds to cease performing its commitments under this JCPOA in whole or in part.

Because snapback sanctions are not retroactive, any contracts signed after the JCPOA takes effect but before sanctions are reinstated would be unaffected — meaning that if Iran violates the JCPOA, it could continue reaping economic and other benefits despite reinstatement of sanctions.