BRUSSELS, May 18 (Xinhua) -- The European Commission on Friday proposed to activate a dormant statute to shield European firms doing business with Iran from renewed U.S. sanctions.
The 1996 Blocking Statute forbids EU companies from complying with the U.S. sanctions.
The statute was originally introduced in response to U.S. trade embargo on Cuba and sanctions against Iran and Libya. It was never enacted as the transatlantic disagreements were ironed out politically.
The Commission also proposed to "remove obstacles for the European Investment Bank (EIB) to decide under the EU budget guarantee to finance activities outside the European Union, in Iran."
In other words, the EIB will be allowed to support EU investment in Iran.
The European Parliament and the Council of the EU will decide to approve or reject the proposals within two months, ahead of the first batch of U.S. sanctions taking effect on Aug. 6.
The moves came on the heels of the EU-Western Balkans summit in Sofia, Bulgaria, during which leaders of member states thrashed out a united front against Washington.
U.S. President Donald Trump declared last week that the United States would withdraw from the Iran nuclear deal, claiming that it had failed to prevent Iran from developing nuclear weapons or supporting terrorism in the region.
Much to Europe's displeasure, foreign companies doing business with Iran are also at the crosshairs of the U.S. sanctions.
