With its publication in the EU Official Journal on 7 August 2018, the EU's updated blocking statute – to include the American sanctions against Iran – entered into force on 7 August. The first section of the US measures was re-established on 7 August and the second section will be re-established on 5 November.
This updated blocking statute (the 1996 regulation that aims to neutralise the extraterritorial effects of US sanctions in the EU) should mitigate the impact of these sanctions on the interests of EU companies doing legitimate business in Iran. The updated blocking statute allows "EU operators" to recover damages arising from US extraterritorial sanctions from the persons causing them and nullifies the effect in the EU of any foreign court rulings based on these sanctions.
The blocking statute also forbids EU persons from complying with these US sanctions, unless exceptionally authorised to do so by the European Commission in case non-compliance seriously damages their interests or the interests of the European Union. According to a European source, no request for authorisation has yet been received by the Commission.
The Commission launched the process of updating the blocking statute on 6 June (see EUROPE 12035), following a decision of the European leaders in Sofia on 16 May (see EUROPE 12022). A two-month scrutiny period for the European Parliament and the Council followed (see EUROPE 12063).
Europeans want to go further
In a joint statement published on 6 August, High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini and the German, British and French foreign ministers – Heiko Maas, Jeremy Hunt, and Jean-Yves Le Drian respectively – spoke of their determination "to protect European economic operators engaged in legitimate business with Iran, in accordance with EU law and with UN Security Council resolution 2231" on the agreement on the Iranian nuclear programme. They announced that they have committed to work on the preservation and maintenance of effective financial channels with Iran, and the continuation of Iran's export of oil and gas "including with third countries interested in supporting the JCPOA and maintaining economic relations with Iran". They said that these efforts will be intensified and reviewed at ministerial level in the coming weeks.
Despite the EU's efforts, many European companies have announced they are leaving Iran due to the risk of US sanctions. (Original version in French by Camille-Cerise Gessant)