EU sets out measures to protect European businesses from US Iran sanctions
The European Union said today that it had taken steps in an effort to protect European businesses from the impact of US sanctions against Iran.
Earlier this month, President Donald Trump opted to withdraw the US from a joint nuclear agreement with Iran, and chose to reinstate all sanctions that had previously been imposed on Iran, but were waived when the deal was signed in 2015.
Some will come into effect by early August, with other sanctions coming into force by the beginning of November.
Read more: Total and Maersk pull out of Iran over US sanctions uncertainty
So the European Commission has kicked off the formal process to activate a "blocking statute" which gives EU companies the go-ahead to ignore the US sanctions.
The plan is to get that measure in place before 6 August when the first batch of US sanctions come into force.
It is also encouraging members of the bloc to look into one-off bank transfers to the central bank of Iran to help authorities their "receive their oil-related revenues".
The European Commission has started the formal process to remove obstacles for the European Investment Bank to decide under the EU budget guarantee to finance activities outside the EU, in Iran. The Commission said this will allow the bank to support EU investment in Iran and could be particularly helpful for small and medium-sized businesses.
The President of the European Commission, Jean-Claude Juncker said:
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 European parliament and council will have a period of two months to raise any objections to the proposed measures before they come into effect.
Read more: Donald Trump pulls US out of landmark Iran nuclear agreement
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