The European Commission says it has launched measures to protect EU business in Iran. The move is reportedly designed to guarantee the interests of EU companies investing in Iran as part of the EU continued commitment to the Joint Comprehensive Plan of Action (JCPOA)
“In Sofia, we saw a show of European unity. 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. But the American sanctions will not be without effect. So we have the duty, the Commission and the European Union, to do what we can to protect our European businesses, especially SMEs,” the President of the European Commission, Jean-Claude Juncker, stated on Monday as quoted by Euronews.
The “blocking statute” dates from 1996 and was designed to defend companies working in Cuba from the effects of a US trade embargo. By re-introducing it now, the EU is seeking to ban firms respecting US sanctions and make related US court rulings non-effective in the EU.
The measure prevents firms from complying with non-EU sanctions laws and stops foreign court judgments based on these laws from being effective in the EU. It also asks EU member countries to impose sanctions on companies who comply with the US rules.
The EU needs to safeguard Iran’s economic benefits as well as its own, in order to keep Tehran in the 2015 international nuclear deal and prevent its collapse. Iran has warned that a loss of EU business will force it to pull out of the accord, under which it agreed to stop enriching uranium in return for greater trade with the West. The decision follows US President Donald Trump’s decision to withdraw from the treaty– and penalize companies that carry on doing business with Iran.
