Published: Fri, May 18, 2018
Global | By Craig Ferguson

EU Commission launches measures to protect EU business in Iran

EU Commission launches measures to protect EU business in Iran

The European Commission on Friday passed the first package of measures on protecting the interests of EU companies investing in Iran from U.S. sanctions, nullifying them on the EU territory, the official statement said.

The Blocking Statute forbids European Union companies from complying with the extraterritorial effects of United States sanctions, allows companies to recover damages arising from such sanctions, and nullifies the effect in the European Union of any foreign court judgements based on them.

With this option, European companies were forbidden to comply with USA sanctions against Iran under threat of punishment.

The EU decision will allow the European companies to ignore the USA sanctions against Tehran. "This approach could help the Iranian authorities to receive their oil-related revenues, particularly in case of U.S. sanctions which could target European Union entities active in oil transactions with Iran", the document says.

The President of the European Commission, Jean-Claude Juncker said: "In Sofia, we saw a show of European unity". We now need to act and this is why we are launching the process of to activate the "blocking statute" from 1996.

Why is the USA imposing sanctions on Iran?

In Berlin, the president of the German Industry Federation (BDI), Dieter Kempf, expressed concern on Friday about the impact that these European protection measures could have on German companies in the United States.

Iranian Foreign Minister and foreign ministers of major world powers stand for a photo after reaching a historic nuclear accord in 2015. "We have pledged to take necessary political steps for our companies to stay in Iran".

Moreover, the Europeans' commitment to the nuclear deal may come with strings attached, including their demands that Iran restrict its missile capabilities as well as its role in the Middle East.

But companies around the world which invested in Iran after sanctions were lifted are now faced with a hard choice as Washington has threatened to punish firms that violate US sanctions by dealing with Tehran.

But the most accurate observations by Macron was that Trump's Iran decision strengthens both Russian Federation and China in the region, something we pointed out weeks ago, begging the question whose interests is Trump representing.

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