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The EU is trying to fight Trump on Iran sanctions, but European businesses are already fleeing

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The European Union moved Friday to revive and old and untested law that could be used to block U.S. sanctions against European businesses — an attempt to keep the ailing Iran deal alive.

The European Commission — the executive body of the E.U. — said it had started the formal process to activate a 22-year-old regulation known as the Blocking Statute, adding reinstated U.S. sanctions on Iran to the scope of the legislation.

The statute effectively bans E.U. companies, under threat of punishment, from complying with U.S. sanctions, and stipulates that no foreign court rulings relating to the sanctions have any effect in the E.U.

“As the European Commission, we have the duty to protect European companies. We now need to act, and this is why we are launching the process to activate the Blocking Statute from 1996,” European Commission President Jean-Claude Juncker said.

The legislation was initially developed to circumvent a U.S. trade embargo on Cuba and sanctions on Iran and Libya, but was never enacted. The move to activate the law puts the E.U. on a collision course with Washington in its bid to salvage the 2015 nuclear accord after Donald Trump’s May 8 decision to revive Iran-related sanctions, prompting warnings from Washington that European businesses should wind up their trade with the Islamic Republic or face punishment.

The European Union moved Friday to revive and old and untested law that could be used to block U.S. sanctions against European businesses — an attempt to keep the ailing Iran deal alive.

The European Commission — the executive body of the E.U. — said it had started the formal process to activate a 22-year-old regulation known as the Blocking Statute, adding reinstated U.S. sanctions on Iran to the scope of the legislation.

The statute effectively bans E.U. companies, under threat of punishment, from complying with U.S. sanctions, and stipulates that no foreign court rulings relating to the sanctions have any effect in the E.U.

“As the European Commission, we have the duty to protect European companies. We now need to act, and this is why we are launching the process to activate the Blocking Statute from 1996,” European Commission President Jean-Claude Juncker said.

The legislation was initially developed to circumvent a U.S. trade embargo on Cuba and sanctions on Iran and Libya, but was never enacted. The move to activate the law puts the E.U. on a

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https://news.vice.com/en_us/article/j5kmq3/the-eu-is-trying-to-fight-trump-on-iran-sanctions-but-european-businesses-are-already-fleeing

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