The move toward tightening sanctions on Iran has moved up a notch as proposed legislation would target global insurers who provide insurance or reinsurance on any deals with Iran that are forbidden by U.S. law.
Bloomberg reported that the proposed legislation, drafted by Rep. Brad Sherman, D-Calif. and Sen. Mark Kirk, R-Ill., would levy penalties on underwriters providing coverage for such deals as oil and gas investments or insurance for banks or companies subject to sanctions by the U.S.
While the legislation is expected to affect mostly Asia-Pacific and Russian underwriters, because most European companies have already either cut or eliminated deals involving Iran, it could take a toll on any companies still doing such business.
Nigel Kushner, chief executive of Whale Rock Legal, a London-based law firm whose clients include companies engaged in legal trade with Iran, was quoted saying that if there were any European Union or U.S. entities that still provided insurance to non-Iranian entities involved in Iranian deals, "this will be the nail in the coffin preventing them from doing so."
