EU announced this Friday that it will protect EU-Iran trade, as a part of the salvation of 2015 deal to exchange economic benefits to Iran and its limit on nuclear program. This move is opposing the U.S. sanction on Iran and end of international agreement on nuclear affair. In other words, there is a escalating tension between U.S. and EU over how to deal with Iran. Those corporations are now driven to choose whether to continue economic tie with Iran and face harsh U.S. sanction, or to stop business with Iran and comply to US law. One explanation to European move is the fact that EU combined exports to Iran100 times larger in value than U.S. does. However, some are skeptical about the impact of this "blocking statute" announced by EU because there are already a number of large companies facing difficulty proceeding the business with Iran due to the effects of U.S. sanctions. In addition, the penalties to EU companies for not continuing their tie with Iran do not seem to be enforced well because of stakes, and while it promises the damage recover from U.S. sanction, it is difficult to anticipate U.S. will receive the loss from U.S.
by Reiji Hirose
Money Talks
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