EU's updated Blocking Statute takes effect

World
Europe

01:20

The European Union's updated Blocking Statute has come into force. The move is seen as a direct countermeasure to Washington's re-imposed sanctions on Iran.

One day after the United States resumed its first batch of sanctions against Iran, the EU's updated Blocking Statute took effect.

The statute forbids EU residents and companies from complying with the listed US extra-territorial sanctions legislation, unless they are exceptionally authorized to do so.

It also allows EU companies to recover damages arising from such legislation. Meanwhile, the effect of any foreign court rulings based on it can be nullified in the EU.

To claim compensation, EU operators can bring the case before the courts of EU member states. The recovery can take the form of seizure and sale of the assets of the person causing the damage.

On Monday, the EU Foreign Policy chief Federica Mogherini and the foreign ministers of Britain, France and Germany announced they had determined to protect European economic operators engaged in legitimate business with Iran.

Updating the Statute is part of their efforts to mitigate the impact of US Iran sanctions on EU companies.

They stressed that the Iran nuclear deal is a key element of the global nuclear non-proliferation architecture and is crucial for the security of Europe, the region and the entire world.