EU To Enforce Blocking Statute To Counter Effects Of US Sanctions On Iran

Hours before the United States’ scheduled enforcement of sanctions against Iran, the European Commission announced that its updated Blocking Statute enters into force Tuesday to mitigate the impact of US sanctions on the interests of EU companies doing legitimate business in Iran.

Iran faces the risk of stage-by-stage US sanctions that President Donald Trump announced in May while withdrawing from the 2015 nuclear deal with the Islamic nation.

US Secretary of State Mike Pompeo told reporters that the first set of sanction waivers associated with the wind-down period after the President’s decision to withdraw from the JCPOA will take effect Monday.

The EU said Monday it deeply regretted the US re-imposition of sanctions, and vowed immediate steps to protect European companies.

A joint statement by EU diplomatic chief Federica Mogherini and the foreign ministers of Britain, France and Germany said it would also work to keep “effective financial channels” open with Iran.

The European Union has made it clear that it is fully committed to the implementation of the JCPOA, as long as Iran also respects its nuclear-related commitments. At the same time, the European Union added that it is “also committed to maintaining cooperation with the United States, who remains a key partner and ally”.

The Blocking Statute allows EU operators to recover damages arising from US extraterritorial sanctions from the persons causing them and nullifies the effect in the EU of any foreign court rulings based on them. It also forbids EU persons from complying with those sanctions, unless exceptionally authorized to do so by the Commission in case non-compliance seriously damages their interests or the interests of the Union. The authorizations will be done on the basis of agreed criteria which will also be issued on 7 August.

by RTTNews Staff Writer

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