Its Business Interests In Iran To Be Protected By EU In Lieu Of Trump Exit: Juncker

Given the possible fall out in the trade relationship that the European Union had developed with Iran after the lifting of sanctions on this oil produce following the historic nuclear agreement with major Western powers, because of United States President Donald Trump puling out of the deal, the EU is very keen to protect the interests of the companies of the region that have trade relations with Iran.

The European Commission President Jean-Claude Juncker said this recently.

There are apprehensions that following the Trump withdrawal from the Iran deal, there might be reimposition of U.S. sanctions on Iran. All of the other signatories to the deal including France, Germany and the United Kingdom have announced that they would stick with the deal with Iran. It is being feared that U.S. sanctions on Iran would not only prevent U.S. companies from doing any business with Iran, foreign companies would also come under its ambit through secondary sanctions. Foreign companies could be denied transactions in dollars when dealing with Iran and can lose access to the U.S. market. Therefore, all companies that have substantial business interest in the U.S. but are also looking to invest and do business in Ir4na are in trouble.

Juncker said at a press conference after the EU-Western Balkans Summit that the EU has to protect its companies that have invested in Iran.

He said that the process of “blocking statute” would be initiated from Friday by the EU which would be a protection for the European companies from being bound to comply with the U.S. sanctions against Iran. This would be the first measure that the EU plans on undertaking in order to protect its companies from the possible Trump sanctions.

He added that European banks would be allowed by the EU to facilitate European business investment in Iran as another part of the measures.

According to Juncker, the cooperation between Iran and the Eu would be further strengthened and there are chances of a visit to Iran by European Climate Action and Energy Commissioner Miguel Arias Canete sometime in the near future to further solidify the relationship and further the exchanges of between the EU and the Iranian authorities.

“The EU will stay in the agreement as long as Iran remains fully committed to it”, said European Council President Donald Tusk, who was also present at the press conference.

The historic Iran nuclear deal had been crafted and signed during the presidentship of Barack Obama in 2015. According to the deal, the economic sanctions were lifted by Western powers in exchange of Iran agreeing to freeze its nuclear programs and allowing foreign teams regular examination of its nuclear facilities.

(Adapted from XinhuaNet.com)

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Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability, Uncategorized

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