Rejecting Iran Sanctions, European Union Bans European Companies From Complying

South Pars a huge offshore natural gas field shared between Iran and Qatar holds around 14 trillion cubic metres of gas

The 2015 nuclear deal opened Iran to worldwide investments after four decades of sanctions.

President Donald Trump pulled the USA out of the Iran nuclear deal earlier this month and pledged to ramp up pressure on the country. "We must do it and we will do it tomorrow morning at 10:30", Juncker said at a summit in Sofia on Thursday.

Following our discussion of Europe's angry response to Trump's unilateral Iran sanctions, in which European Union budget commissioner, Guenther Oettinger made it clear that Europe will not be viewed as a vassal state of the USA, stating that "Trump despises weaklings".

The European Commission will initiate a blocking statute - a regulation which was created in 1996 to get around Washington's trade embargo on Cuba.

EC will maintain its cooperation with Iran while the US Treasury Department has recently announced to European companies that they have been given a six-month deadline to end their investment in Iran.

The 2015 Iran nuclear deal was a pact negotiated by Iran, China, Russia, Germany, France, and Britain, as well as the European Union and the United States, that authorized the lifting of economic sanctions against Tehran in exchange for the dismantling of its nuclear program and compliance with global atomic regulations. "We have opted to support it whatever the United States decides to do", said the French president on arrival at the Sofia summit.

Europe's hardline position will infuriate Trump, as Brussels effectively nullifying USA sanctions will prompt a violent outburst from Trump, who needs Europe on his side for U.S. sanctions of Iran to have any chance of succeeding. "We have pledged to take necessary political steps for our companies to stay in Iran".

European businesses are anxious that their ties with the USA could be damaged if they continue doing Iranian deals.

As Iran's biggest trading partner, the European Union embarked on a trade offensive after the 2015 agreement and the subsequent lifting of sanctions.

A blocking statute is a law enacted in a local jurisdiction that attempts to hinder the application of a law made by a foreign jurisdiction and is widely seen as an attempt to put pressure on Washington not to punish European firms that continue doing business with Iran.

Mr. Trump's Iran decision is part of a broader pattern of actions that have deeply frustrated America's European allies.

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