European Union shields businesses from fallout of Trump's nuclear sanctions on Iran

European Investment Bank Luxembourg

European Investment Bank Luxembourg

The EU has officially adopted measures to protect European companies working in Iran if the USA reimposes sanctions against Tehran.

The European Union on Friday launched "the blocking statute" process to spare Europeans from U.S. sanctions on Iran as part of efforts to preserve the nuclear deal with Tehran.

To view the full article, register now.

"We now need to act and this is why we are launching the process to activate the "blocking statute" from 1996".

"The blocking statute forbids European Union companies from complying with the extraterritorial effects of USA sanctions, allows companies to recover damages arising from such sanctions from the person causing them, and nullifies the effect in the European Union of any foreign court judgements based on them", the commission said.

The European Parliament and the Council of the EU will decide to approve or reject the proposals within two months, ahead of the first batch of USA sanctions taking effect on August 6.

USA trade representative office to hear corporations' case against tariffs
The Chinese Commerce Ministry said State Council Vice Premier, Liu He, would arrive in the US on Tuesday for trade negotiations. ENERGY: Benchmark U.S. crude oil gained 13 cents to $71.09 a barrel in electronic trading on the New York Mercantile Exchange.

Maersk, the world's biggest shipping container firm, the French oil giant Total and German-based insurance firm Allianz have already announced plans to withdraw from operations in Iran, to avoid new United States sanctions.

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

Other measures proposed by the Commission, the EU executive, include urging EU governments to make transfers to Iran's central bank and to start the legal process of allowing the European Investment Bank to lend to EU projects in Iran.

Earlier this month, the United States announced its intention to withdraw from the JCPoA, an agreement which prevents Iran from developing nuclear weapons in exchange for greater participation in the global economy.

Earlier this year, the European Commission said it was looking to open talks with Iran regarding gas supply to the continent through the Southern Gas Corridor (SGC), a huge pipeline under construction. Trump vowed to reinstate the previous sanctions and introduce new restrictions should Tehran carry out its nuclear ambitions. It has also facilitated the ability of the European Investment Bank to support investment in small and medium-sized enterprises in Iran.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.