As one reaction to the U.S. withdrawal from the JCPOA, the EU Commission will reactivate the "Blocking Statute" against the effects of the extra-territorial application of U.S. secondary sanctions. EU companies may be caught in the crossfire that is arising from the EU/U.S. conflicting approaches on Iran.
- EU companies and their global counterparties should reassess the risks deriving from business relations with Iran or Iranian nationals.
- Business relations with Iran or Iranian entities require a careful check of the risks under U.S. sanctions.
- It is advisable to evaluate the impacts and consequences should the Blocking Statute be extended to the renewed or new U.S. sanctions against Iran.
For additional information, please see our client alert.