EU to block US anti-Iran sanctions starting August 7

The EU said Monday it deeply regretted the US reimposition of sanctions on Iran after President Donald Trump pulled out of the 2015 nuclear pact, and vowed immediate steps to protect European companies
Monday, 06 August 2018 18:38

U.S. President Donald Trump is signing an executive order reimposing many sanctions on Iran, three months after pulling out of the Iran nuclear deal. He says the U.S. policy is to levy "maximum economic pressure" on the country.

Trump warned that those that don't wind down their ties to the Iranian economy "risk severe consequences" under the reimposed sanctions.

European foreign ministers say they "deeply regret" the reimposition of U.S. sanctions on Iran.

A statement Monday by European Union foreign policy chief Federica Mogherini and foreign ministers of France, Germany and the United Kingdom insisted that the 2015 Iran nuclear deal "is working and delivering on its goal" of limiting Iran's nuclear program.

"We deeply regret the re-imposition of sanctions by the US, due to the latter's withdrawal from the Joint Comprehensive Plan of Action (JCPOA) [formal name for the nuclear deal]," Mogherini, Jean-Yves Le Drian of France, Heiko Maas of Germany, and Jeremy Hunt of the United Kingdom said in their joint statement.

"We are determined to protect European economic operators engaged in legitimate business with Iran, in accordance with EU law and with UN Security Council resolution 2231. This is why the European Union’s updated Blocking Statute enters into force on 7 August to protect EU companies doing legitimate business with Iran from the impact of US extra-territorial sanctions," the statement read.

"This is why the European Union's updated Blocking Statute enters into force on 7 August to protect EU companies doing legitimate business with Iran from the impact of US extra-territorial sanctions."

According to the US Treasury, the sanctions will be reinstated on the purchase of Iran's sovereign debt and Iranian rials. The punitive measures will also apply to Iran's trade in gold and precious metals, sale to and from Iran of aluminium, steel, coal and certain types of software. The restrictions will also extend to Iran's automotive industry as well as on the purchase of US dollars by the Iranian government.

The blocking statute forbids EU firms from complying with US sanctions, allowing them to recover damages from such penalties and nullifying any foreign court rulings against them.

French carmaker Renault, which does not sell cars in the US, has said it will remain in Iran despite the sanctions. But French oil group Total and carmaker PSA have already indicated they are likely to pull out of Iran. 

Furthermore, the United States is revoking licenses issued for sales of passenger aircraft, despite flag carrier IranAir having outstanding contracts with French-Italian ATR, US Boeing and Europe's Airbus. IranAir's collective order of 200 aircraft — of which only a few have been delivered so far — is now in jeopardy.

Secretary of State Mike Pompeo says the renewed sanctions against Iran are an important pillar in U.S. policy toward the Tehran government.

Pompeo says the sanctions will be rigorously enforced and remain in place until the Iranian government radically changes course.