EU Unable to Neutralize US Sanctions against Iran

by Soeren Kern  •  August 8, 2018 at 5:00 am

       

• "Anyone doing business with Iran will NOT be doing business with the United States." — US President Donald J. Trump.
• "The EU is demanding that its largest corporations risk the whole cake for a few crumbs." — Samuel Jackisch, Brussels correspondent for German public broadcaster ARD.
• "The fines are in the multibillions these days so it's just not worth the risk for a small piece of business and maybe pleasing a European government." — Investment banker quoted by Reuters.

In a joint statement, EU foreign policy chief Federica Mogherini (pictured) and the foreign ministers of France, Germany and the UK openly admitted that for the EU the Iran nuclear deal is all about money and vowed to protect European companies from US penalties. (Photo by Dean Mouhtaropoulos/Getty Images)

The European Union has announced a new regulation aimed at shielding European companies from the impact of US sanctions on Iran. The measure, which has been greeted with skepticism by the European business media, is unlikely to succeed: it expects European companies to risk their business interests in the US market for interests in the much smaller Iranian market.

The so-called "Blocking Statute" entered into effect on August 7, the same day that the first round of US sanctions on Iran officially snapped back into place. Those sanctions target Iran's purchases of US dollars — the main currency for international financial transactions and oil purchases — as well as the auto, civil aviation, coal, industrial software and metals sectors. A second, much stronger round of sanctions targeting Iran's oil exports, takes effect on November 5.

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