Europe's Protection Regulations for Companies Trading with Iran to Take Effect on Tuesday

The European Union has announced that measures to protect European companies trading with Iran from the impacts of U.S. sanctions are ready to be implemented. According to the Associated Press, the European Commission announced on Monday, August 6, that the law known as the 'Blocking Regulation' will come into effect at midnight on Tuesday. Under this law, compliance of European companies with U.S. sanctions will be halted unless the European Commission officially grants permission to the companies. The Blocking Regulation also blocks the impact of U.S. court sanctions in Europe and allows European companies to recover and compensate for damages caused by sanctions against them. As reported, the pillars of the EU's strategy to preserve the JCPOA include: granting loans from the European Investment Bank, special measures to protect EU companies against U.S. secondary sanctions (Blocking Regulation), and a proposal for EU governments to resort to direct money transfers to the Central Bank of Iran to avoid U.S. penalties. Recently, however, after members of the European Parliament voted on a proposal allowing the 'European Investment Bank' to cooperate with Iran, the head of this bank announced that it prefers not to invest in Iran. The EU expressed its 'deep' concern over the re-imposition of U.S. sanctions against Iran and stated that it would take immediate steps to protect European companies. Federica Mogherini, the EU's foreign policy chief, and the foreign ministers of Britain, France, and Germany stated in a joint statement that they would work to keep effective financial channels open with Iran. The statement noted that the JCPOA was achieved to ensure that Iran's nuclear program remains peaceful, a fact confirmed by the International Atomic Energy Agency. They also urged Iran to fully comply with its commitments under the JCPOA and added that the lifting of nuclear sanctions is a crucial part of the JCPOA, which not only positively affects economic and trade relations with Iran but also impacts the lives of the Iranian people. The statement emphasized the need to protect 'European economic operators' who engage in legitimate trade with Iran and stated that these companies would be protected against U.S. extraterritorial sanctions. The U.S. withdrew from the JCPOA in May, and the first round of its sanctions against Iran is set to begin at dawn on Tuesday. Previously, several major European companies had exited Iran. Meanwhile, since the lifting of most economic sanctions against Iran in 2016, European countries have been seeking to develop trade and economic relations with Iran. Germany's emphasis on guaranteeing investments of German companies in Iran The German Minister of Economy stated on Monday that his country continues to provide guarantees for exports and investments of companies trading with Iran. According to Reuters, Peter Altmaier added that Berlin is still negotiating with the United States for exemptions for German companies from Iran's sanctions. The German Minister of Economy emphasized that 'export guarantees and investment guarantees from the Federal Ministry of Economy remain available for companies.' European countries, especially Germany, France, and Britain, have announced that they will strive to benefit from the advantages of the agreement as long as Tehran remains committed to it.