Published On: Fri, May 18th, 2018

EU to introduce ‘Blocking Statute’ to circumvent US sanctions on Iran

roiufgh

The European Union, whose member countries are an important trading partner of Iran, has decided to introduce a blocking statute –a legislation which will allow the European companies to do business with the Arabian country despite the US sanction- to make sure that noting prevent its companies to do business in the Shia dominated country and the companies affected by the unilateral sanction imposed by the White House get adequate compensations.

Actually, the blocking statute was originally developed by the EU when the United States imposed similar sanction against Cuba in the year 1996. Noteworthy, then, this provision was not utilised for the purpose it was originally developed.

This time, the situation is different. With the UK, France and Germany standing firmly on their opinion that the US’s decision to walk out from the Iran Nuclear Deal is a big mistake, the European Union may be forced to try the statute in the near future.

China, EU, India, South Korea and Turkey are the five prime trading partner of Iran. In that sense, the US’ decision makes less effect of its economy compared to the countries mentioned above.

At this moment, the European Union will not be able to overcome the huge financial losses which are likely to happen if it breaks all trade ties with Iran.

Will Trump revisit his anti-Iran policy?

 

Vignesh. S. G

Photo Courtesy: Google/ images are subject to copyright 

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EU to introduce ‘Blocking Statute’ to circumvent US sanctions on Iran