USwarnsof‘ consequences’ for those doing business with Iran
AT ODDS WITH ALLIES The EU has passed a law forbidding European firms from complying with Trump’s sanctions
The Trump administration issued a stark warning to the US’s closest European allies on Tuesday, promising to sharply penalise European governments or companies that continue to do business with Iran.
“We do not intend to allow our sanctions to be evaded by Europe or anybody else,” John R Bolton, the national security adviser, said in a speech on Tuesday at a forum sponsored by a group intensely critical of the Iran nuclear accord.
Bolton promised “terrible consequences” for anyone who continues to do business with Iran after November 4, the day the US will reinstate the remaining sanctions it had lifted under the deal.
Many European countries, including Britain, France and Germany, have announced their intention to continue doing business with Iran. The EU has passed a law forbidding European companies from complying with US sanctions.
Secretary of state Mike Pompeo said at the same forum that the Trump administration was “disturbed and deeply disappointed” by plans announced on Monday by Britain, France, Germany and other countries committed to the Iran nuclear accord to create an unspecified economic channel that would be protected from US sanctions.
“This is one of the most counterproductive measures imaginable for regional and global peace and security,” Pompeo said. “By sustaining revenues to the regime, you are solidifying Iran’s ranking as the number one state sponsor of terror.”
On Monday, the world powers that joined with the United States in the agreement with Iran, announced an agreement to create a “special purpose vehicle,” which would serve as a conduit for financial transactions between Iran and other countries to protect them from US sanctions.
Europe is deeply committed to the nuclear deal, seeing it as crucial to its national security. In the
NEW YORK:
wake of US President Donald Trump’s decision in May to withdraw from the accord, European leaders have been trying to come up with ways to salvage the deal in hopes that Iran will continue to abide by the restrictions on its nuclear program.
The only way to do that, they have concluded, is to give Iran some economic benefits, and that means defying US sanctions.
So far, Iran is abiding by the agreement, according to nuclear inspectors.
Until Tuesday, Trump administration officials had largely played down their differences with Europe over the accord, describing the disagreement as little more than a family squabble. Such soothing talk now appears to be over.
Many large European businesses, including Total and Volkswagen, are already pulling out of Iran as a result of pending US sanctions. And even before the final sanctions go into effect, Iran’s crude oil exports are plummeting as international oil companies bail out of deals with Tehran.