Ready to protect European firms from US sanctions on Iran: EU

The European Union today said that new measures are ready to take effect to protect European businesses from the impact of US sanctions on Iran.

The measures also aim to save the agreement meant to curb Iran's nuclear ambitions after the US abandoned the pact. The EU insists the deal is important for global security and is trying to keep economic and financial supply lines to Tehran open.

The EU's executive Commission said today that the "blocking statute" will take effect beginning at midnight Washington time (0400 GMT Tuesday).

The mechanism stops European companies from complying with the US sanctions unless they have authorisation from the Commission. National governments could impose "effective, proportionate and dissuasive penalties" on any of their companies that cave in.

The statute also blocks the effects of U.S. court actions in Europe and allows European firms to recover damages arising from the sanctions from anyone who causes them.

In a statement, the foreign ministers of Britain, France and Germany the European guarantors of the Iran nuclear deal together with EU foreign policy chief Federica Mogherini said, "We deeply regret the re-imposition of sanctions by the U.S."
They said the deal "is working and delivering on its goal" and that "we are determined to protect European economic operators engaged in legitimate business with Iran."