European Official's Statements on Cooperation with Iran After the Implementation of U.S. Sanctions

Gunther Oettinger, the European Commissioner for Budget and Human Resources, stated on Tuesday, August 7, that German deposit and credit institutions have the capacity to resolve issues in relations with Iran despite U.S. sanctions. According to Reuters, Oettinger told the German newspaper Rheinische Post that banks like "Volksbank" can facilitate trade relations between German companies and Iran. These banks have less close ties with the U.S. and are less concerned about U.S. sanctions. He added that the European Commission is also working to encourage the European Investment Bank (EIB) to expand its activities in Iran. In this context, Federica Mogherini, the EU's High Representative for Foreign Affairs, stated on Tuesday that the EU encourages small and medium-sized enterprises to increase trade with Iran, considering it a security priority. On Monday, U.S. President Donald Trump signed an executive order that reinstates part of the sanctions against the Islamic Republic that had been suspended after the nuclear agreement. Trump also emphasized on his Twitter account that "anyone who does business with Iran will not do business with the United States." He stated that these sanctions are the "most biting" sanctions ever imposed and that another phase will be implemented in November. Meanwhile, reports indicate that Germany's central bank, Deutsche Bank, has blocked the transfer of 300 million euros in cash from Iran by changing its regulations. It was previously reported that Iran intends to transfer its 300 million euros in cash held at the "European-Iranian Trade Bank," known as Eihbank, back to Iran. Several major European companies present in Iran left the country before the U.S. sanctions were implemented. In this context, the German car manufacturer Daimler announced on Tuesday that it would halt its business activities in Iran following the reinstatement of Washington's sanctions against Tehran. Richard Grenell, the U.S. ambassador to Germany, also welcomed the cessation of German-Iranian business cooperation in line with the enforcement of U.S. sanctions and pressuring Iran. The U.S. Treasury Department has planned the reinstatement of Iran's sanctions in two phases, with the second phase, primarily targeting Iran's oil industry, set to be implemented on November 4. U.S. officials state that they aim to reduce Iran's oil exports to zero by that time. The reinstatement of Iran's sanctions has met with various reactions; while the European Union has expressed deep concern over the return of sanctions, Israel, which has been a serious critic of the nuclear agreement, welcomed it.