Investors and those intending to trade with Iran directly or indirectly are still faced with compliance issues, notably avoiding involvement with so-called "designated" or "specially designated nationals". There are also practical problems in arranging finance, handling payments and obtaining effective insurance.

The subject of this brief article is the issue of the governing law and forum for dispute resolution with Iranian counterparties. The importance of these aspects will depend upon the size of the transaction, its intended life and the methods by which payments are to be made. We consider mainly one scenario where a foreign/EU counterparty is seeking to invest in Iran in a long-term project.

Memorandum of Understanding: Is it binding?