Rejecting Iran Sanctions, European Union Bans European Companies From Complying

Casey Dawson
May 18, 2018

As the European Commission we have the duty to protect European companies.

In a clear response to the USA move, EU Commission President Jean-Claude Juncker has announced that the bloc plans to apply a 1996 law that would prohibit European companies from complying with any sanctions the USA will reintroduce against Tehran, Deutsche Welle reported.

The European Commission said on Friday the measure would come into force within two months, unless the European Parliament and EU governments formally rejected it.

The US will re-impose economic sanctions on Iran and has warned that these sanctions could also apply to countries which continue to deal with the country, demanding EU action to protect European companies investing in Iran.

The European Commision says it has launched measures to protect EU business in Iran.

The US position is at odds with that of France, Germany and the United Kingdom, which say they are committed to the agreement and to expanding trade with Iran.

European Union officials say they are revamping the blocking statute to encompass U.S. President Donald Trump's May 8 decision to revive Iran-related sanctions, after the expiry of 90- and 180-day wind-down periods, including sanctions aimed at Iran's lifeblood oil sector and transactions with its central bank.

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

Historic deal on Iran's nuclear program from 2015 provides for the removal of sanctions against Iran in exchange for limiting its opportunities for the enrichment and storage of nuclear materials.

As the European signatories of the JCPoA, France, Germany and the United Kingdom have repeated their commitment to the deal, and discussed compensatory measures to ensure that USA sanctions do not make the agreement void.

U.S. sanctions must be reinstated within 90 to 180 days.

The commission, executive of the European Union (EU), also proposed to "remove obstacles for the European Investment Bank (EIB) to decide under the EU budget guarantee to finance activities outside the European Union, in Iran".

What action are Europe's businesses taking?

President Donald Trump has repeatedly threatened to pull out of the JCPOA unless Congress and America's European allies "fix" it with a follow-up accord. "We have pledged to take necessary political steps for our companies to stay in Iran".

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