European Union moves to shield European Union firms from USA sanctions against Iran

European Union moves to shield European Union firms from USA sanctions against Iran

The European Commission announced it is enacting its so-called "blocking statute" which forbids EU companies from complying with sanctions re-imposed by the US President.

As long as the Iranians respect their commitments, the EU will of course stick to the agreement of which it was an architect - an agreement that was unanimously ratified by the United Nations Security Council and which is essential for preserving peace in the region and the world,"said the President of the European Commission, Jean-Claude Juncker".

The 2015 nuclear deal opened Iran to global investments after four decades of sanctions.

US President pulled out of the Iran nuclear accord and gave businesses around the world notice to end their dealings with Tehran

U.S. Treasury Secretary Steven Mnuchin said in an announcement that "sanctions will be reimposed subject to certain 90-day and 180-day wind-down periods".

The agreement was signed by six world powers, alongside Iran, to curbed Iranian nuclear activities in return for the lifting of UN, US and European Union sanctions.

The EU's blocking statute bans any EU company from complying with US sanctions and does not recognise any court rulings that enforce American penalties. The goal is to have the measure in force before August 6, 2018, when the first batch of USA sanctions take effect. However, the Cuba row was settled politically, so the blocking regulation's effectiveness was never put to the test, and its value may lie more as a bargaining chip with Washington. "So we have the duty, the Commission and the European Union, to do what we can to protect our European businesses, especially SMEs".

More news: Sharif misquoted, says Pakistan PM

"Guarantees of benefits of the JCPOA should be given to Iran".

During talks in Brussels on Tuesday, Iran's foreign minister Mohammad Javad Zarif said efforts to save the deal were on the "right track".

The European Commission is also encouraging member-states to "explore the possibility of one-off bank transfers to the Central Bank of Iran".

More news: Three confirmed dead after severe storms in the Northeast

European investments in Iran, mainly from Germany, France, and Italy, have jumped by more than 20 billion euros since 2016.

The European Commissioner for Energy, Miguel Arias Canete, is expected on Friday in Tehran, where he will meet for three days with Iranian officials.

In pulling out, Trump complained the nuclear deal does nothing to stop Iran's ballistic missile program or its interference in conflicts across the Middle East from Syria to Yemen.

More news: Guatemala opens embassy in Jerusalem, 2 days after US move

Related Articles