Europe Begins Legal Process to Block US Sanctions Against Iran

Donald Tusk, President of the European Council, announced on Thursday at the end of a meeting of leaders from 28 EU countries that they unanimously agreed to remain in the agreement as long as Iran adheres to its commitments under the JCPOA. Mr. Tusk also added that the European Council has asked the European Commission to prepare for actions regarding European interests that are affected. Meanwhile, Jean-Claude Juncker, President of the European Commission, told reporters that the Union must support its companies and therefore work is beginning to prepare an amendment to the 'Blocking Statute' in this regard. This law, which dates back to 1996, must now include Iran's sanctions laws so that Europe can utilize it. According to this law, European companies are not obliged to comply with US sanctions. Mr. Juncker's remarks come as major European companies that have contracts with Iran are halting their activities one after another. Maersk, the largest shipping company, announced on Thursday, May 17, that it would stop its operations in Iran due to US sanctions. On the same day, the Italian company Danieli announced that it had postponed its 1.5 billion euro steelmaking contract with Iran. Allianz Insurance, Siemens, and Total are also among other major European companies that have reported halting their activities in Iran. Mr. Juncker stated that the Union's goal is to have this legal process ready before the re-imposition of US sanctions on August 6. Meanwhile, German Chancellor Angela Merkel, following the announcement of the EU's decision, said they are trying to examine the issue of compensating small and medium-sized companies. However, Ms. Merkel added that considering this issue for all business entities targeted by US actions is 'not feasible and should not create any illusions in this regard.' European countries hope that these actions will convince Iran to remain in the JCPOA in the face of US secondary sanctions. Tehran has warned that if it does not benefit from the JCPOA, it will withdraw from the agreement and continue its nuclear program without restrictions. Donald Trump announced on May 8 that the JCPOA 'brought neither peace nor calm' and that the Islamic Republic continued to expand its ballistic missile program and 'support for terrorism' after the JCPOA, declaring the United States' withdrawal from the nuclear agreement with Iran and six world powers. Iran has stated that it will exit the agreement if its interests are not guaranteed.