EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
New legislation
EU Deforestation regulation: Commission proposes another one-Year Postponement
The EUDR aims to ensure that certain products sold in or exported from the EU do not contribute to global deforestation or forest degradation. After a previous one-year delay, the current compliance deadline is December 30, 2025.
However, due to ongoing IT-related issues, the European Commission is considering extending the compliance deadline to December 30, 2026. This proposed extension is intended to reduce uncertainty for regulatory authorities and operational challenges for stakeholders both within the EU and in other countries. It also aims to provide adequate time to resolve identified risks in the IT system's architecture and ensure it can handle the expected operational demands when the EUDR takes effect.
EU Council reimposes restrictive measures on Iran
On the 29th of September the EU Council decided to reimpose restrictive measures on Iran in response to its nuclear proliferation activities, following the reintroduction of UN sanctions. This action was triggered by the E3 (France, Germany, and the UK) invoking the "snapback" mechanism of the Joint Comprehensive Plan of Action (JCPoA), which had initially lifted sanctions in 2015.
The reintroduced measures include:
- Travel bans and asset freezes for certain individuals and entities, and prohibition on making funds or economic resources available to the listed individuals and entities.
- Economic and financial sanctions affecting trade, finance, and transport sectors, including:
- Bans on the import and transport of crude oil, natural gas, and petrochemical products.
- Prohibitions on selling key energy sector equipment, precious metals, and certain naval equipment.
- Freezing assets of the Central Bank of Iran and major Iranian banks.
- Restrictions on Iranian cargo flights' access to EU airports and maintenance of Iranian cargo aircraft.
The background of this decision stems from the JCPoA, which aimed to ensure Iran's nuclear program remained peaceful. However, the E3 assessed that Iran was significantly non-compliant with its commitments, leading to the reintroduction of sanctions after a 30-day period following the UN Security Council's failure to prevent the snapback.