General trade licence: services necessary for the continued operation of the Shah Deniz project
The General Trade Licence for the services necessary for the continued operation of the Shah Deniz gas field permits certain activities prohibited under the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019.
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Like all sanctions legislation, the ‘Iran (Sanctions) (Amendment) Regulations 2026’, which amends both the Iran (Sanctions) Regulations 2023 and the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 includes carefully designed sanctions mitigations as part of the UK’s responsible approach to the use of sanctions.
This includes the following general licences to enable the continued operation of the Shah Deniz gas field in Azerbaijan, which provides critical energy supplies to the UK’s European partners. This is a continuation of long-standing policy and aligns the UK with the EU and US who have similar carveouts for activities related to Shah Deniz.
The authorisations in paragraph 5 of this licence are subject to the conditions that the activity taking place is in connection with essential operations of the Shah Deniz Upstream Unincorporated Joint Venture, the South Caucasus Pipeline, the Azerbaijan Gas Supply Company, and any related pipeline projects or joint ventures established for the purpose of transporting gas from Azerbaijan to Turkey and Europe.
Any enquiries regarding this licence should be sent to otsi@businessandtrade.gov.uk