Explainer: The Iran nuclear deal

• EU to adopt regulation terminating nuclear-related sanctions with effect from Implementation Day.
• US President to issue sanctions waivers to take effect on Implementation Day.
• Iran to prepare nuclear related commitments and notify IAEA that it will apply Additional Protocol provisionally with effect from Implementation Day.

• Congress may pass a bill of disapproval on the terms of the deal.
• Under such circumstances, President Barack Obama pledged to use his veto.
• There will be a window of 12 days for Obama to issue his veto although this is likely to happen more swiftly.
• Once a veto is issued, there will be 10 days to override this veto.

Nuclear related – to be carried out by Iran

• Pursuant to Roadmap agreed between Iran and IAEA on 20 July 2015 (confidential document).
• Iran will provide IAEA explanation on outstanding issues.
• There will be technical and political meetings.
• Arrangements in place regarding the issue of Parchin (there has been previous access to this military site).
• All steps in Roadmap must be fulfilled before Implementation Date.

• Iran submits written answers by 15 Aug 2015
• IAEA has one month review
• IAEA resolves remaining PMD issues/questions by 15 Oct 2015
• IAEA presents report on PMD by 15 Dec 2015

• For 10 years: centrifuges reduced to 5,060 IR-1. Excess centrifuges stored under IAEA monitoring.
• For 15 years: level of uranium enrichment capped at 3.67%.
• For 15 years: Natanz is Iran’s only enrichment facility.
• Between years 11-15: Iran can replaced IR-1 centrifuges at Natanz with more advanced ones.

• For 15 years: stockpile kept under 300 kg up to 3.67% enriched uranium hexafluoride (UF6) or the equivalent in other chemical forms (this is a 98% reduction from existing stockpiles).
• Excess sold based on international prices.
• Uranium oxide enriched 5-20% fabricated into fuel for Tehran Research Reactor.

• Converted to research facility.
• No more enrichment or R&D at this facility.
• 1,044 IR-1 centrifuges in six cascades will remain here.

• For 10 years: R&D with uranium will only include IR-4, IR-5, IR-6 and IR-8 centrifuges.
• After 8 years: Iran starts manufacturing agreed numbers of IR-6 and IR-8 centrifuges without rotors.
• After 10 years: begin phasing IR-1 centrifuges.
• Manufacture advanced centrifuge machines only for the purposes specified with E3+3.

• Iran will redesign and rebuild reactor into lower power research reactor with E3+3 partnership.
• Iran would take out the original core of the reactor – this will become unusable.
• Permanent: Iran will not produce weapons grade plutonium.
• For 15 years: no heavy water reactors in Iran.
• Permanent: Iran ships out all spent fuel from Arak reactor.

• By 15 October 2015: Iran fully implements PMD roadmap agreed with IAEA.
• Permanently: Additional Protocol measures – Iran will provisionally apply this and eventually its parliament will ratify it.
• Permanently: full implementation of modified Code 3.1 of the Subsidiary Arrangements to its Safeguards Agreement.
• These give IAEA enhanced inspection abilities to access nuclear facilities and suspicious sites anywhere in the country under managed access.
• For 20-25 years: IAEA has access to Iran’s supply chain for its nuclear prorgamme and has continuous surveillance of centrifuge manufacturing and storage facilities.
• Procurement channel created for Iran’s purchase of nuclear related equipment and material.

• Requests for access will be made in good faith by IAEA. Not aimed at interfering with Iranian military/national security activities.
• IAEA provides Iran reasons for concerns regarding undeclared nuclear materials or activities and request access to those locations.
• Iran may propose to the IAEA alternative means of resolving the IAEA’s concerns.
• If cannot agree within 14 days of original IAEA request, the Joint Commission will adjudicate and if needed decision made by majority vote.
• Consultation with, and voting by Joint Commission must happen within 7 days.
• Iran would implement decision within 3 days (total of 24 days after original IAEA request).

Sanctions – to be carried out by E3+3

• UNSC resolution endorsing JCPOA will outline termination of all previous resolutions targeting Iran’s nuclear programme – 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), 1929 (2010) and 2224 (2015).
• Subject to snap-back.

• Cease the application of economic sanctions against Iran’s oil and banking sector allowing Iranian banks and companies to reconnect with international systems.
• Will remove designation of certain entities and individuals.
• Allows for license non-U.S. persons that are owned or controlled by a U.S. person to engage in activities with Iran permitted under JCPOA.
• Allows for the sale of commercial passenger aircraft to Iran.
• Allows for license for importing Iranian-origin carpets and foodstuffs into US.
• US takes appropriate measures to address laws at state or local level preventing full implementation of JCPOA – US will actively encourage officials to adhere to JCPOA policy.
• US refrains from policy intended to adversely affect normalisation of economic relations with Iran.
• 8 years after Adoption date – if IAEA concludes that all nuclear activity in Iran remains peaceful, US will seek legislative action to terminate/modify nuclear related sanctions.
• US sanctions on Iran targeting human rights, terrorism and missile activities remain.

• Terminate all provisions of the EU Regulation related to Iran’s nuclear programme.
• Includes: financial and banking transactions; transactions in Iranian Rial; provision of U.S. banknotes to Iranian government; access to SWIFT; insurance services; efforts to reduce Iran’s crude oil and petrochemical product sales; investment; transactions with Iran’s energy and shipping sector; trade in gold and other precious metals; trade with Iran’s automotive sector.
• Removes individuals and entities designated under sanctions.
• EU refrains from re-introducing sanctions terminated under JCPOA (Iran views any re-introduction as grounds to cease performing its commitments).
• Refrain from policy intended to adversely affect normalisation of economic relations with Iran.
• For 8 years after Implementation date: EU’s arms embargo and restrictions on transfer of ballistic missiles remain.

• After 5 years: UN sanctions on conventional weapons that were linked to Iran’s nuclear activities terminate.
• After 8 years: UN sanctions on Iran’s missile programme that were linked to Iran’s nuclear activities terminate.
• US and international sanctions on Iran’s conventional weapons and missile capabilities remain.

• Under easing of US and EU sanctions, Iran will be allowed access to roughly $100 billion revenues frozen abroad in a special escrow.
• Not a signing bonus.

Dispute resolution & snap-back

• Comprised of representatives of Iran and the E3+3, with the EU High Representative.
• Coordination led by EU High Representative.
• Meet on quarterly basis or at request of any JCPOA participant.
• Decision and work subject to UN rules of confidentiality.
• Amongst other things, in charge of dispute resolution and establishing procurement channel.

• 15 days for review by: Joint Commission assesses dispute.Time for review can be extended by mutual consent.
• If unresolved, 15 days for review by: Ministers of Foreign Affairs. Any participant could refer the issue to the Ministers. Time for review can be extended by mutual consent.
• If unresolved, 15 days for review by: Advisory Board (three members, one each appointed by the participants in the dispute and a third independent member). Will provide non-binding decision.
• Joint Commission has 5 days to review decision of Advisory Board. If no resolution and complaining party sees action as “significant non-performance” – unresolved issue can be treated as grounds to cease performing commitments in whole or part. Complaining party will notify UNSC.
• UNSC will then votes on a resolution as to continuing lifting of sanctions. If resolution not adopted by 30 days, old UNSC resolution sanctions snap-back. China and Russia cannot veto. Iran will cease to perform its obligations if sanctions snap back.
• Sanctions snap-back not applicable with retroactive effect to contracts signed between any party and Iran.