EU moves to save Iran nuclear deal

EU moves to save Iran nuclear deal

News:

1. European Union has initiated the ‘Blocking Statute’ to save the Iran Nuclear Deal as it had pledged to stick to the deal if Iran respects its terms.

Important Facts:

2. The “Blocking Statute” was made in 1996 to circumvent Washington’s trade sanctions on Cuba. But, the statute never came into effect as the Cuba row was settled politically.
3. The statute has the following provisions:

• It prohibits EU companies and courts from complying with specific foreign sanction laws.
• It allows companies to recover damages arising from such sanctions from the person causing them, and nullifies the effect in the EU of any foreign court judgements based on them.

4. 28 EU member states and the European Parliament have to sign the statute.
5. EU has updated the list of U.S. sanctions on Iran falling within its scope.
6. It is expected that the statute will be in force before August 6 when the first batch of reimposed U.S. sanctions take effect.
7. The Statute’s will be more effective as a bargaining chip with USA.
8. The European Commission also took steps allow the European Investment Bank to support EU investment in Iran,” particularly involving small and medium-sized companies.
9. As part of “Confidence-building measures” the Commission would take steps to help Iran’s energy sector and small and medium-sized companies.
10. China and Russia have also stepped up efforts to save the deal.
11. Iran has warned that it would begin “industrial-scale” uranium enrichment if Europe cannot provide solid guarantees to preserve Iran’s economic benefits given in the deal.