European companies 'protected' from US sanctions following Iran nuclear row

A Foreign Office minister reassures businesses they will not face legal action in connection with deals with Iranian firms.

By Aubrey Allegretti, political reporter

Tuesday 7 August 2018 10:56, UK

U.S. President Donald Trump talks about his meeting with Russian President Vladimir Putin, during a meeting with House Republicans in the Roosevelt Room of the White House on July 17, 2018 in Washington, DC. Following a diplomatic summit in Helsinki, Trump faced harsh criticism after a press conference with Putin where he would not say whether he believed Russia meddled with the 2016 presidential election
Image: Donald Trump has reimposed the sanctions after pulling out of the nuclear deal
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European companies will be protected from the impact of new sanctions imposed by the US on Iran, Britain has said.

Foreign Office minister Alistair Burt has moved to reassure businesses they will not face legal action in connection with deals with Iranian firms.

A "blocking statute" comes into force on Tuesday that will nullify potential court action taken by the US over breach of the sanctions.

Hailing the law, Mr Burt said it would protect European businesses.

Foreign Office minister Alistair Burt makes a statement in the House of Commons, London, on the latest situation in Egypt.
Image: Alistair Burt has sought to reassure businesses based in Britain

He told BBC radio: "If a company fears legal action taken against it and enforcement action taken against it by an entity in response to American sanctions then that company can be protected as far as EU legislation is concerned.

"It is a commercial decision for companies whether they continue to work in Iran."

Brussels says protecting businesses based there is necessary because the sanctions have an "unlawful" reach beyond US borders.

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"We deeply regret the re-imposition of sanctions by the U.S," the EU said in a statement.

President Rouhani has dismissed calls for talks with the US
Image: Hassan Rouhani has called the action 'psychological warfare'

Other countries have also asked EU officials for details on the blocking regulations, as they explore ways to bypass sanctions.

"There is a clear interest around the world," one staffer said.

On Monday, US President Donald Trump said he would fully enforce sanctions imposed on Iran following his decision to pull out of the 2015 nuclear deal.

The measures will hit key metals, such as gold, and the automotive industry.

Hassan Rouhani, the Iranian president, hit back by calling the move "psychological warfare".

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