Britain, France and Germany have launched a 30-day process to reimpose UN sanctions on Iran over its nuclear programme, saying Tehran has not stuck to a 2015 deal that lifted the restrictions.
Known as the “snapback mechanism”, the procedure will lead to the reinstatement of a raft of sanctions that could deal a blow to an already struggling Iranian economy.
Foreign Minister Abbas Araghchi said Iran 'will respond appropriately to this illegal and unjustified action'.
What sanctions will be reimposed?
Sanctions to be reinstated include an embargo on the export of conventional arms to Iran, along with a ban on Tehran carrying out any activity with ballistic missiles capable of delivering nuclear weapons. A ban on any transfer to Iran of ballistic missile technology will also be included.
Iran will be hit with a complete ban on uranium enrichment and reprocessing. The country has previously been permitted to enrich uranium to a low level of 3.67 per cent for a civilian nuclear programme. The question of enrichment had been at the heart of negotiations with the US in June that were brought to an abrupt end by the Israel-Iran war.
In the economic sphere, the sanctions will include a freeze on selected Iranian assets around the world and a travel ban on Iranian individuals and entities. Countries would be authorised by the UN to inspect shipments carried by Iran Air Cargo − the cargo branch of flag carrier Iran Air − and the Islamic Republic of Iran Shipping Lines.
Why are the Europeans triggering the snapback?
Under the Joint Comprehensive Plan of Action reached between world powers and Iran in 2015, Iran agreed to limit uranium enrichment to levels necessary only for civilian nuclear power, in exchange for economic sanctions being lifted. The UN's International Atomic Energy Agency was tasked with monitoring Tehran’s nuclear programme.
The snapback mechanism’s purpose is to swiftly reimpose all pre-deal sanctions without being vetoed by UN Security Council members, including permanent members Russia and China, in the event that Iran is non-compliant.
The process began on Thursday, when Britain, France and Germany − known as the E3 − formally notified the UN Secretary General Antonio Guterres and the Security Council president that they were triggering the procedure.
That begins a 30-day window during which a new resolution to continue sanctions relief for Iran must be adopted to avoid the reimposition of the restrictions. That is unlikely, as the US, Britain and France would veto such a resolution.
The US itself cannot activate the snapback since US President Donald Trump withdrew Washington from the nuclear deal in 2018.
The E3 said Iran had not adhered to the 2015 deal. They said Iran must resume negotiations with the US over its nuclear programme, allow in UN nuclear inspectors, and account for the more than 400kg of highly enriched uranium that the IAEA says it possesses.
They allege that Iran has “wilfully and publicly departed” from the nuclear deal’s commitments.
A number of countries suspect Iran is pursuing nuclear weapons, a charge that Tehran denies. In May, the IAEA said Iran had amassed 408kg of uranium enriched up to 60 per cent purity. If it is enriched to 90 per cent, it would be enough to make nine nuclear weapons, according to the UN agency, though a weapon would require other expertise, such as a detonation device.
The amount of enriched uranium far exceed the limits set out in the nuclear deal. In addition, in 2022, Tehran removed most monitoring equipment, including IAEA cameras, from its nuclear sites. A year later, Iran barred some of the watchdog's most experienced inspectors.
The view from Iran
Iran has long maintained that its nuclear programme serves peaceful purposes only. Tehran also argues that it has the right to abandon the nuclear deal’s limits because Washington withdrew from the agreement and reimposed its own sanctions.
Tehran contends there is no legal basis for the Europeans to reimpose UN sanctions, claiming the countries failed to uphold the accord after the US exit.
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
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Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods