PROPOSED AMENDMENTS TO THE EU BLOCKING STATUTE

In May, we published an e-bulletin discussing President Trump’s announcement that the United States would withdraw from the Iran nuclear deal (the Joint Comprehensive Plan of Action – “JCPOA“), and that all pre-JCPOA nuclear-related sanctions on Iran (including secondary sanctions) would be re-imposed.

The European Union, along with leaders of the other countries party to the JCPOA (Germany, France, the United Kingdom, Russia and China) have all reiterated their commitment to the JCPOA.

On 18 May, the European Commission announced in a press release that it had taken (or will continue to take) the following four steps to continue the full and effective implementation of the JCPOA:

  • launched the formal process to activate Council Regulation (EC) No 2271/96 (the “Blocking Statute“) by updating the list of US sanctions on Iran falling within its scope;
  • launched the formal process to remove obstacles for the European Investment Bank to decide under the EU budget guarantee to finance activities outside the European Union, in Iran;
  • continue and strengthen the ongoing sectoral cooperation with, and assistance to, Iran, as confidence building measures; and
  • encourage Member States to explore the possibility of one-off bank transfers to the Central Bank of Iran.

Please click here for our full briefing where we provide a summary of the provisions of the Blocking Statute, as well as a brief analysis of its enforcement and commentary on the potential conflicts which arise as a result of the proposed amendments.

 

Susannah Cogman
Susannah Cogman
Partner
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+44 20 7466 2580
Daniel Hudson
Daniel Hudson
Partner
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+44 20 7466 2470
Elizabeth Head
Elizabeth Head
Senior associate
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+44 20 7466 6443
Elizabeth Cahill
Elizabeth Cahill
Associate
Email
+44 20 7466 2487

 

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