France Announces Consideration of Compensation for European Companies Working with Iran

The French Finance Minister stated that Paris is examining the possibility of compensation from the European Union for European companies that may face U.S. sanctions due to their dealings with Iran. In an interview with C News TV and Europe 1 radio on Sunday, Bruno Le Maire emphasized that the EU could protect European companies from U.S. sanctions by invoking 'blocking regulations.' He also insisted that France wants a stronger European stance on this issue. The European Commission announced on Friday that it has begun the process of reviving 'blocking regulations' to protect the interests of European companies in Iran against U.S. sanctions. The history of these regulations dates back to 1996, when the EU aimed to shield its companies from U.S. sanctions against Cuba. Following the U.S. withdrawal from the JCPOA and the re-imposition of unilateral sanctions within a 90-day and 180-day period, several European companies have announced they will exit Iran if they do not receive exemptions from the U.S. However, on Sunday, the French Finance Minister stated, 'Do we want a post-Trump America to be the economic police of the world? The answer is no.' Le Maire had previously criticized U.S. extraterritorial sanctions, asking whether Europe wants to be subservient to U.S. decisions or assert its own economic interests. While the U.S. has advised European companies to refrain from trading with Iran, on Saturday, Miguel Arias Cañete, the EU Energy Commissioner, stated in a joint press conference with Ali Akbar Salehi, head of the Atomic Energy Organization of Iran, that the EU seeks to deepen economic relations with Iran. The Energy Commissioner said, 'We sent a message to our Iranian friends that as long as they adhere to the (nuclear) agreement, Europeans will also fulfill their commitments. The Iranians said the same to us.' On the same day, Behrouz Kamalvandi, spokesperson for the Atomic Energy Organization of Iran, who was present in negotiations with the EU Energy Commissioner, told reporters that Europe is looking for a way to conduct banking transactions and company activities without regard to U.S. sanctions. Among the measures the European Commission is considering to maintain the JCPOA is the possibility of direct exchanges with the Central Bank of Iran. These measures are expected to be implemented within a maximum of two months before the end of the 90-day deadline for the re-imposition of sanctions on Iran, provided there are no objections from the European Council and the European Parliament during this period.