Iran’s economy is still subject to extensive economic sanctions on its most important sectors, despite the breakthrough in nuclear negotiations with the P5+1 world powers in Geneva, according to a law firm specialising in the issue.

The two sides agreed that Iran would limit its uranium-enrichment activities in exchange for the lifting of certain sanctions that would allow Tehran to receive as much as $7bn over the next six months.

“Perhaps what is most notable is how much of the sanctions ‘architecture’ will remain in place,” says Douglas Maag, senior counsel at London-based law firm Clyde & Company. “Iran will still be subject to the extensive financial sanctions that cut it off from the Western capital and insurance markets and isolate its banking system.

“The crude oil export restrictions will remain in place, as will restrictions on the import by Iran of refined petroleum and dealings with the Iran and shipping industries,” he adds. “Up to $100bn of Iran’s foreign exchange reserves will remain frozen and a large number of state-owned enterprises will remain sanctioned.”

Restrictions on Iran’s oil exports will likely leave its crude revenues at a level 60 per cent lower than two years ago, before the most significant US and EU measures targeting crude exports came into place.

However, the Geneva deal clinched for Iran a moratorium on new sanctions for the next six months. In addition, the P5+1 agreed to drop prohibitions on foreign investment in Iran’s automotive industry, trade in precious metals, exports of petrochemicals and to issue licences for repairs in Iran’s aviation industry.

“The relevant US sanctions can most likely be lifted by the president without the approval of Congress,” says Maag. “The EU would need to pass legislation amending existing Regulation 267/2012, in order to permit the petrochemical exports and trade in gold and precious metals, but this can be passed in reasonably short order by the EU.”