The European Union for the first time activated its new mechanism for freedom of navigation sanctions on Monday (June 8) amid Iranian threats targeting the Strait of Hormuz. The sanctions were imposed on two Iranian individuals and one entity with the aim of combatting Iran’s forced inspections of passing vessels and the collection of illegal passage fees from approved ships.
Since the military strikes by the United States and Israel against Iran, Iran has imposed restrictions on maritime shipping through the Strait of Hormuz, leading to economic impacts on the EU and global energy. As a vital strategic waterway globally, about one-fifth of oil transportation relies on the Strait of Hormuz annually.
In response to the crisis, the EU expanded its sanctions legal framework on May 22 this year to target those obstructing legitimate passage and infringing on navigation freedom in the strategic waterway.
EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, stated during the European Defense Ministers’ meeting in Cyprus on Monday: “Ministers clearly expressed today that Iran’s actions are unacceptable.”
In reaction, EU member states approved the sanctions in Brussels today. The EU detailed the sanctioned entities and their violations of international law in a written statement:
The Hormozgan Provincial Command of the IRGC Navy is controlling the Strait of Hormuz and illegally implementing a “screening (political inspection) and fee system”. They forcibly demand passing commercial ships to present identity documents, cargo lists, and destination information for inspection, determining which ships are allowed to pass. Some ships are only allowed passage after paying illegal fees, severely violating the legitimate passage and navigation freedom as prescribed by international law.
Mohammad Akbarzadeh serves as the Deputy Commander responsible for political affairs at the IRGC Navy.
As a representative of the Revolutionary Guards Navy, he directly participated in and advanced the policy system of harassing, intimidating, attacking, and forcibly extorting fees from multiple commercial ships. He even openly threatened to use “missiles or drones” to attack non-compliant passing vessels.
Hamid Hosseini is a trade representative and official of Iran’s Oil, Gas and Petrochemical Products Exporters’ Union and a member of the Iranian Chamber of Commerce.
He actively promoted and assisted in implementing the aforementioned fee policy, attempting to legitimize the extortion behavior of Iranian authorities towards passing commercial ships through commercial associations and industry alliance channels.
Individuals and entities listed in the sanctions will face immediate measures within the EU:
Asset Freeze:
All their assets and economic resources within the EU will be frozen immediately.
Travel Ban:
Sanctioned individuals will be prohibited from entering or transiting the territories of EU member states.
Financing Ban:
EU citizens and businesses are strictly prohibited from directly or indirectly providing any funds or economic resources to these sanctioned entities.
The EU officials emphasized that this action sends a clear signal: safeguarding the legitimate passage rights in international strategic waterways is the EU’s bottom line. When necessary, the EU will not hesitate to utilize this new freedom of navigation sanctions tool again.