The EU announced a package of measures on Friday to counter US sanctions on Iran, setting up a potential new conflict with Washington as Europe fights to save a landmark nuclear deal with Tehran. The plans unveiled by the European Commission include enabling its member states to make direct payments for oil to Iran’s central bank and the revival of a 1990s era so-called “blocking statute” to allow companies to ignore US sanctions without fear of punishment in Europe.
The EU’s moves defy US wishes for it to comply with Washington’s relaunch of measures against Iran after Donald Trump pulled out of the 2015 nuclear accord last week. But analysts say there will be limits to the effectiveness of the Brussels response, and European leaders, including French president Emmanuel Macron, have said they do not want a trade war with the US over Iran. “As long as the Iranians respect their commitments, the EU will, of course, stick to the agreement of which it was an architect,” said Jean-Claude Juncker, European Commission president. “But the American sanctions will not be without effect. So we have the duty, the commission and the European Union, to do what we can to protect our European businesses, especially SMEs.”
Ensuring Iran is still able to reap the economic benefits of the nuclear agreement is deemed critical to keeping the deal alive. Under the accord, which was signed by the US, the EU, France, Germany, the UK, China and Russia, Iran agreed to scale back its nuclear activities in return for many western sanctions being lifted. It enabled Tehran to more than double its oil exports, which helped lift the country out of a deep recession. Mike Pompeo, US secretary of state, who has held talks with his European counterparts, is due to present a diplomatic plan on the way forward for Washington and Europe on Iran in a foreign policy address on Monday. Brian Hook, a senior state department official, said the plan aimed at achieving “a new security architecture and a better security framework, a better deal” to replace the existing accord.