U.S. Issues New Executive Order Lifting Certain Sanctions against Iraq (with Turza Comment)

On May 27, 2014, President Obama signed an Executive Order ending protections established previously under Executive Order 13303 (dated May 22, 2003), which prohibited legal process against certain Iraqi entities and assets. In particular, the new Executive Order lifts the prohibition on any "attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to the Development Fund for Iraq and Iraqi petroleum, petroleum products, and interests therein . . . and other property . . . [of] the Central Bank of Iraq."

At the time of their imposition in 2003, these prohibitions were intended to protect the Iraq Development Fund and other property of the Government of Iraq from legal process in order to avoid interference with "the orderly reconstruction of Iraq." Recognizing the changed circumstances in the country, "including the Government of Iraq's progress in resolving and managing the risk associated with outstanding debts and claims arising from actions of the previous regime," the May 27 Executive Order finds that the protections imposed over a decade ago are no longer necessary.

Turza Comment: Sometimes, change comes slowly. President Obama's May 27 Executive Order is a reminder that sanctions and other restrictions on foreign economic activity imposed under the authority of the International Emergency Economic Powers Act are intended to be temporary in nature. History demonstrates that "emergencies" may last for many years. Whether the current round of Ukraine-related sanctions will have similar longevity remains to be seen.

See: Executive Order (May 27, 2014); E.O. 13303.
Related news: Twelve More Russians Sanctioned under Magnitsky Act (with Turza Comment) (May 20, 2014); Sanctions Update for Week of May 12, 2014 (with Turza Comment) (May 16, 2014); Update on Ukraine and Other Sanctions - Week of May 5 (with Turza Comment) (May 9, 2014); Sanctions Update: Ukraine and Beyond (with Turza Comment) (May 2, 2014).
See also: Cabinet Sanctions Page (some materials are accessible to Cabinet subscribers only).

For more information, please contact Dale Turza, James Treanor or Keith Gerver.