With the Return of U.S. Sanctions, EU Enacts Statute Aimed at Keeping European Companies in Iran
In a bid to sustain trade and economic relations with Iran, the European Union is looking to its so-called “blocking statute” that will forbid European companies from complying with enacted U.S. sanctions.
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Matt Thomas, a partner in legal firm Blank Rome’s International Trade group, said E.U. companies suing the U.S. government was unlikely.
“The possibility of private parties successfully recovering damages against the US government itself in proceedings before E.U. member state courts seems far-fetched, given international law principles of sovereign immunity that shield foreign nations from most private suits,” he explained.
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Matt Thomas said that, moving forward, the E.U. will likely maintain a proportional response, to avoid overshadowing broader bilateral trade and foreign policy issues.
“However, ultimately, much will depend on how aggressively the sanctions actually are enforced,” he said. “If the U.S. targets large E.U. companies – like banks and energy companies – with particularly aggressive sanctions enforcement, the Iran issue could quickly escalate to being a very serious bilateral issue.”
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"With the Return of U.S. Sanctions, EU Enacts Statute Aimed at Keeping European Companies in Iran," by James Carstensen was published in CNS News on August 7, 2018.