The European Union is taking steps to protect EU companies investing in Iran from renewed American sanctions on Tehran after US President Donald Trump decided to unilaterally withdraw from the Iran nuclear deal late last month.
The European Commission said it has adopted an update of the Blocking Statute and of the European Investment Bank’s External Lending Mandate. The move follows up on the informal Leaders’ Meeting in Sofia, as well as the commission’s announcements of May 18, reads an article published by Brussels-based weekly newspaper New Europe on Monday. Excerpts follow:
“These measures are meant to help protecting the interests of EU companies investing in Iran and to demonstrate the EU’s commitment to the Joint Comprehensive Plan of Action,” the commission said in a press release.
“Through the update of the Blocking Statute, the extraterritorial sanctions that the United States will reimpose on Iran are added to its scope, while the update of the EIB’s External Lending Mandate would make Iran eligible for investment activities by the EIB,” the European Commission said on June 6.
The commission noted that this enabling measure does not, however, commit EIB to actually support projects in Iran as it is up to the bank’s governing bodies to decide to take up such financing activities in line with relevant rules and procedures.
Following the adoption on June 6, the European Parliament and the Council will have two months to object to these measures before they enter into force. If no objection is raised, the updated acts will be published and will enter into force at the latest at the beginning of August, by the time the first batch of re-imposed US sanctions will take effect, the commission said.