European Commission: The European Investment Bank Decides on Cooperation with Iran Independently

On Wednesday, June 6, the European Commission adopted new measures to support European companies dealing with Iran against U.S. sanctions. The Commission also announced that Iran is sufficiently qualified for cooperation with the European Investment Bank, but the final decision rests with the bank. Following the support of EU leaders for the JCPOA at the Sofia summit, the European Commission announced on May 17 that it would support European companies dealing with Iran within two months by resorting to 'blocking regulations.' The 'blocking regulations' prevent EU companies from complying with U.S. sanctions and do not recognize any court rulings for the enforcement of U.S. penalties. In further efforts to preserve the JCPOA, the European Commission updated the 'blocking regulations' on Wednesday, June 6, to protect European companies against U.S. 'extraterritorial' sanctions against Iran. The European Commission considered this action as a demonstration of the EU's commitment to the Joint Comprehensive Plan of Action (JCPOA). The Commission added that after updating the 'foreign loan authorization' of the European Investment Bank, Iran has become eligible for investment from this bank. However, the Commission clarified that this does not mean that the European Investment Bank is obligated to support European projects in Iran, and the decision in this regard is up to the board in accordance with relevant laws and regulations. Previously, the European Investment Bank stated that it could not ignore U.S. sanctions against Iran. A spokesperson for the European Investment Bank told Reuters that 'this European bank is not a suitable tool' for solving the problem of U.S. sanctions. The U.S. has warned European companies to refrain from cooperating with Iran, and several major companies, including Total and Maersk, have announced the cessation of their activities in Iran. The European Commission stated that if the European Parliament and Council do not oppose the new decisions within two months, these decisions will be implemented. EU leaders, including French President Emmanuel Macron, acknowledged that only small and medium-sized European companies without a presence in the U.S. can decide on their continued presence in Iran. Many large companies have refrained from operating in Iran due to financial exchanges with the U.S. and investments in that country. The continued presence of large European companies in Iran will only be contingent upon these companies being exempt from U.S. sanctions. In this context, the foreign and finance ministers of the UK, Germany, and France, along with Federica Mogherini, the EU's foreign policy chief, formally requested U.S. foreign and finance ministers for exemptions for European companies from sanctions.