France Reports Progress in Europe to Counter US Sanctions Against Iran

Jean-Yves Le Drian, the French Foreign Minister, stated on Thursday, June 1, that the European Union has made progress in taking measures to protect its trade relations with Iran, but these actions are not sufficient. According to Reuters, in an interview with the LCI television network, Le Drian said, "We have made progress on one issue, which is the implementation of the 1996 law that we have now updated to allow us to protect our companies from US pressure, but this is not enough." The French Foreign Minister added, "We need to create a financial mechanism based on the euro or other currencies besides the dollar that can protect companies related to Iran while allowing Iran to export its oil." Donald Trump, the President of the United States, announced on May 8 that the US would withdraw from the nuclear agreement with Iran known as the JCPOA and would not only reinstate suspended sanctions against Iran but also impose new penalties on Tehran. After the US withdrawal from the JCPOA, US officials warned European companies to stop their activities in Iran. So far, several foreign companies operating in Iran have announced that they will cease their operations in the country. Meanwhile, European countries are negotiating and consulting to find a solution to counter US sanctions against Iran. In this context, Federica Mogherini, the EU's foreign policy chief, stated that the reason for Europe's efforts to preserve the JCPOA is not due to economic interests but rather security interests. On the other hand, Abbas Araghchi, Iran's Deputy Foreign Minister, previously stated that Europeans must provide Iran with an economic package that has practical solutions to secure Iran's interests. Meanwhile, Reuters reported, citing Western diplomats, that the return of US sanctions against Iran's Atomic Energy Organization would hinder work related to the redesign of the Arak reactor and the repurposing of the Fordow site. Three Western diplomats said that this issue was discussed in detail at a meeting last Friday between representatives of Britain, France, and Germany, along with Russia and China, with Iran in Vienna. China and Russia also expressed concern in this regard. One Western diplomat stated, "These sanctions could lead to the proliferation of nuclear weapons, as they will halt activities for changes at the heavy water reactor in Arak and the Fordow site." The future of the Arak reactor was one of the most challenging topics in Iran's nuclear negotiations with global powers, which ultimately led to an agreement in the summer of 2015 between Iran and the governments of the US, Russia, China, Britain, France, and Germany. In the plan to restructure the Arak reactor, the facility was supposed to change its heavy water production in such a way that it would no longer be capable of producing plutonium used in nuclear weapons. The US and China jointly chair the working group responsible for the Arak reactor restructuring project.