28. Mai 2018
EU Heads of State have agreed that the EU is to remain committed to the Iran nuclear deal. The EU Commission was given a green light to reactivate the so-called EU Blocking Regulation. The 1996 legislation originally targeted the U.S. trade embargo on Cuba. The Commission will now include the re-imposed U.S. secondary Iran sanctions. The aim is to have the amended EU Blocking Regulation in force before 6 August 2018.
In a nutshell, the EU Blocking Regulation has four mechanisms:
Implications for Iran business: The reactivated EU Blocking Regulation puts German companies with business ties to the U.S. and Iran between a rock and a hard place. On the one hand, a breach of Art. 5 of the EU Blocking Regulation constitutes an administrative offence under German law, cf. Sec. 82, para. 3 of the AWV. Ceasing commercial activity in Iran only for purposes of complying with U.S. secondary sanctions can be punished with a fine of up to EUR 500,000. On the other hand, non-compliance with U.S. secondary sanctions may effectively cut off business from the U.S. market and financial system and trigger severe consequences under U.S law.
Given this conflict of laws, German companies are well advised not rush to pull out of business activities in Iran. Instead, they should thoroughly analyze the implications of the EU Blocking Regulation when contemplating any actions to comply with U.S. secondary sanctions. Risk management is key in these times.
The Competition, EU and Trade team of Taylor Wessing has a broad range of experience in representing companies with regard to sanctions against Iran. We provide comprehensive and proactive advice to all trade compliance issues following the re-imposition of U.S. sanctions. On specific U.S. issues, our trade experts work closely with a U.S. law firm. We have also successfully partnered together with local experts in Iran.
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Überblick über beschlossene Maßnahmenpakete und Handlungsempfehlungen für Unternehmen
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von Dr. Michael Brüggemann und Johannes Schaadt-Wambach, LL.M. (Prag)