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

AP  |  Brussels 

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

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 open.

The EU's Commission said today that the "blocking statute" will take effect beginning at midnight 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 actions in and allows European firms to recover damages arising from the sanctions from anyone who causes them.

In a statement, the foreign ministers of Britain, and the European guarantors of the nuclear deal together with EU 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 "

US decided in May to pull out of the UN Security Council-sanctioned agreement, saying it did nothing to stop Iran developing missiles or destabilizing the and Gulf regions.

The Europeans argue that it was only ever meant to curb the development of nuclear weapons.

A first set of US sanctions that had been eased by the under the terms of the landmark 2015 deal take effect again late today. Those sanctions target Iran's automotive sector as well as gold and other metals, but EU officials say it remains unclear exactly what impact they will have on European companies.

A second batch of U.S sanctions targeting Iran's and central are set to take effect in early November.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 06 2018. 20:50 IST