On Wednesday 16 May, European Commission President Jean-Claude Juncker warned that although the Europeans' means are limited in the face of the extraterritoriality of the US sanctions on Iran, the EU would exploit them to the full.
"Our means are there. We will use them, but we must not delude ourselves, the means are limited. We will exploit the means we have to the full", Juncker said at a press conference in Brussels with United Nations Secretary General António Guterres. A few minutes earlier, European Commissioner for Migration Dimitris Avramopoulos had announced that the college had discussed the possibility of implementing the blocking statute. At the time of EUROPE going to press, the leaders of the 28 EU member states were meeting to discuss the possible European counter measures at their informal dinner in Sofia.
Bringing Iran guarantees
During the evening of Tuesday 15 May, High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini, the French, British and German ministers and their Iranian counterpart met in Brussels to try and bring guarantees to Iran so it could remain in the deal. Mogherini announced the start of "intensive expert" discussions on their trade and economic relations, following the US withdrawal from the Iranian nuclear deal and the future reintroduction of US sanctions. "We agreed (Ed: so the deal can continue to operate) to deepen our dialogue at all levels", Mogherini told press.
More concretely, "we undertook (...) to start intensive expert discussions (...) with Iran, addressing" certain issues "with a view to reaching practical solutions in the coming weeks", she said, reiterating that the lifting of the nuclear sanctions and the normalisation of trade and economic relations with Iran were key parts of the nuclear deal. Without speaking about "legal or economic guarantees", the goal is to reach "something very concrete, very practical", Mogherini said, adding she hoped for something "very operational and very quickly". The US sanctions will take effect in just under three months, and in just under six months for those linked to energy.
Mogherini thus announced work on the protection of the EU's economic operators and the guarantee of legal security, although the US sanctions have extraterritorial scope. "We decided that the EU member states (...) will work on complementary mechanisms and measures, not only at the European level but also at the national level, particularly to protect the member states' economic operators", she said.
She also highlighted the strengthening of relations between Europeans and Iranians, in the areas of energy, banks and transport. In concrete terms, the discussions will focus on maintaining and deepening economic relations, continuing the sale of Iranian oil, petrochemical and gas products, and related transfers, and on the development and implementation of memoranda of understanding and contracts between European companies and their Iranian counterparts, and the realisation of new investment in Iran. Other areas for work are effective bank transfers with Iran and the continued supply of export credits, as well as "the development of specialised funds in the bank, insurance and financial trade sectors, with a view to facilitating economic and financial cooperation, especially by offering practical support to trade and investment" and the development of a "transparent, rules-based" trade environment in Iran. In addition, Europeans and Iranians agreed to continue their maritime, terrestrial, air and rail relations.
After their meeting, Iran's Foreign Affairs Minister Mohammad Javad Zarif said the two parties were moving in "the right direction". "Now, this depends on what we can do in the coming weeks", he added.
Despite the political goodwill, European businesses are already announcing their possible withdrawal from Iran. The French group Total warned on 16 May that it would not continue its project on developing the biggest gas field in the world, in Iran, unless it obtained an exemption from the US sanctions, as it could not "allow itself to be exposed to secondary US sanctions".
Elsewhere, the joint commission of the E3+3 and Iran will meet in Vienna next week at the level of political directors or deputy foreign affairs ministers. The nuclear deal will also be discussed at the EU General Affairs Council on 28 May. (Original version in French by Camille-Cerise Gessant)