Following the green light given by EU leaders at an informal summit in Sofia, the European Commission took steps to protect the interests of European companies investing in Iran and to signify the European Union's commitment to the joint global action plan (the Iranian nuclear deal).
The President of the European Commission, Jean-Claude Juncker , said : "In Sofia, we witnessed a demonstration of European unity. As long as the Iranians respect their commitments, the European Union, of course, will stick to this agreement, of which it was one of the co-architects - an agreement that has been unanimously ratified by the United Nations Security Council and which is essential to preserve peace in the region and in the world. But we must know that the announced American sanctions will not be without effect. And therefore we have the duty, Commission and European Union, to protect our European businesses, especially small and medium-sized enterprises."
As long as Iran fulfills its obligations, the European Union fully maintains its commitment to continue the full and effective implementation of the Iran nuclear deal. The announcement by the United States of their withdrawal from this agreement and their decision to reinstate the sanctions may have a negative impact on European companies that have invested in Iran in good faith since its signing. The lifting of sanctions related to the Iranian nuclear program is an essential part of the overall joint action plan. The European Union is determined to mitigate the impact of US sanctions on European companies and to take steps to preserve the development of trade and economic relations with Iran, which began with the lifting of sanctions. This objective can only be achieved through a combination of national and European measures.
The European Union is also committed to maintaining the essential cooperation that exists with the United States in many areas. The United States remains an indispensable partner and ally.
Following the unanimous support of the Heads of State or Government of the Member States of the European Union at their meeting in Sofia on the evening of 16 May, in favor of the proposals put forward by President Jean-Claude Juncker and High Representative and Vice-President Federica Mogherini , the Commission has today acted at four levels :
1. It launched the formal process of activating the blocking law, by updating the list of US sanctions against Iran that fall within its scope. This legislation prohibits European companies from complying with the extraterritorial effects of US sanctions, entitles them to compensation for any damage resulting from such sanctions by the person who caused the damage and nullifies the effects in the European Union of any foreign court decision based on these penalties. The goal is for this measure to come into effect by August 6, 2018, when the first round of US sanctions will take effect.
2. It launched the formal process that will remove legal obstacles preventing the European Investment Bank (EIB) from deciding, within the framework of the EU budget guarantee, to finance activities outside the European Union, in Iran. This will enable the EIB to support European investment in Iran, which could be useful, in particular, for small and medium-sized enterprises. [All relevant rules and procedures will apply to different financial transactions.]
The European Parliament and the Council will have a period of two months to raise objections to these measures, once proposed, before they enter into force. This period may be shortened if both institutions report their absence of objections before its term. The entire process can also be terminated if political circumstances no longer justify the adoption of these measures.
3. In order to enhance confidence, the Commission will continue and intensify the ongoing sectoral cooperation with Iran, as well as the assistance provided to it, particularly in the energy sector and with regard to small and medium-sized enterprises. As a first step, the Commissioner for Climate Action and Energy, Miguel Arias Cañete, will visit Tehran this weekend. Financial assistance will also be mobilized under the partnership or development cooperation instruments.
4. The Commission encourages Member States to examine the possibility of spot bank transfers to the Central Bank of Iran. This modus operandi could help the Iranian authorities collect their oil revenues, especially in the event that US sanctions target EU entities involved in oil transactions with Iran.