πŸ‡¬πŸ‡§

EU creates work-around for U.S. Iran sanctions

Credit: Reuters Studio
Published on January 31, 2019 - Duration: 02:12s

EU creates work-around for U.S. Iran sanctions

Europe has set up a mechanism to keep trading with Iran, despite U.S. sanctions and pressure on its allies.

But those sanctions are so all-encompassing that diplomats say only small, mostly humanitarian transactions will get through.

Robin Emmott and Lucy Fielder report.

Advertisement

EU creates work-around for U.S. Iran sanctions

The EU has set up a workaround that skirts U.S. sanctions and allows some trade with Iran, despite U.S. pressure on its European allies to cease all such business.

Reuters' Robin Emmott, in Brussels, says Washington isn't thrilled by Europe's efforts, but it won't lose too much sleep either.

SOUNDBITE (English) REUTERS DIPLOMATIC CORRESPONDENT, ROBIN EMMOTT, SAYING: "There could be a way that this gets past Washington, because it focuses mainly on humanitarian trade, and the United States would live with that, because obviously their point is that they want to target what they call the Iranian regime, rather than ordinary Iranians." "Because U.S. sanctions are so all-encompassing, they can reach beyond U.S. frontiers and it's very difficult to get around them.

So it may be that this new trade mechanism can only deal in small amounts of trade, because it's a barter-like system." The move could also help keep alive the flailing joint 2015 nuclear deal.

France, Germany and Britain were key negotiators to what was seen as a huge EU foreign policy achievement.

They opposed U.S. President Donald Trump's decision to pull out last year.

But that hasn't stopped EU relations with Tehran worsening.

This month it slapped its first sanctions on Iran since the nuclear pact was agreed, after Iranian missile tests and after alleged assassination plots were uncovered on European soil.

SOUNDBITE (English) REUTERS DIPLOMATIC CORRESPONDENT, ROBIN EMMOTT, SAYING: "This isn't really a change of heart, this is basically what the EU diplomats like to call a two-track approach.

So they say to Iran look we will keep the deal alive but you must do more.

You want to stop your ballistic missile defense program, you want to curtail your role in Syria's civil war and you want to do what you can to bring Yemen's war to an end.

None of this is going down very well in Tehran, so there have been tensions." The risks of breaching U.S. sanctions have put European companies off the big deals with Iran they once hoped for.

And while Iran has welcomed this latest step, diplomats say it'll bring little relief to its sanctions-hit economy.

You are here

Recent related news from verified sources

For years, Karar Hussein has sold sweets in his shop near the entrance to one of Shiite Islam's holiest shrines, accepting whatever currency was offered to him...
4 hours ago • FOXNews.com

Despite criticizing the U.S. decision not to extend any sanction waivers for Iranian oil customers, Turkey appears to be fully complying with the U.S. sanctions...
5 days ago • OilPrice.com

The Chinese government's top diplomat, State Councillor Wang Yi, told Iranian Foreign Minister Mohammad Javad Zarif on Friday that China resolutely opposes...
1 week ago • Reuters

(MENAFN - Iraq Business News) Washington has exempted Baghdad from some of its unilateral sanctions against Tehran, allowing Iraq to continue importing energy...
6 hours ago • MENAFN.com

In recent weeks, Iran has been storing more oil onshore and at tankers at sea as it looks to continue producing oil, but its crude exports are severely...
3 days ago • OilPrice.com

India has officially ended all oil imports from Iran, India’s Ambassador Harsh Vardhan Shringla said on Wednesday, after Prime Minister Narendra Modi has...
2 days ago • OilPrice.com

China offered strong support to Iran on Friday, with its top diplomat telling Iran's foreign minister that China opposes unilateral sanctions and supports...
1 week ago • Reuters

Iran has adopted new tactics and new destinations in shipping its oil exports following the re-imposition of U.S. sanctions, a senior Iranian maritime official...
1 week ago • Reuters

Recent related videos from verified sources

Iran Says It Will Not Surrender Even If It Is Bombed 00:34
Credit: Wochit News - Published 3 days ago 

Thanks to Sanctions, Iranian Supercars Look like Your Grandma's Ride 01:25
Credit: Vocativ - Affiliate - Published 3 days ago 

US Sanctions on Iran are Creating a Dangerous and Thriving Smuggling Subculture 01:15
Credit: Vocativ - Affiliate - Published 3 days ago 

North Korea Says Impounded Ship Is The Biggest Obstacle To Improving Relations 00:48
Credit: Wochit News - Published 4 days ago 

Huawei CFO Meng under house arrest in expensive mansion 01:38
Credit: TomoNews US - Published 4 days ago 

Iran's Rouhani Rejects Talks Until U.S. Falls In Line With 2015 Accord 00:57
Credit: Wochit News - Published 5 days ago 

Iran Rejects Talks With The U.S. As Rhetoric Between Washington & Tehran Increases 00:47
Credit: Wochit - Published 5 days ago 

Iran States U.S. May Face "Economic War" 00:29
Credit: Wochit - Published 5 days ago 

You might like