US urged not to punish EU companies that trade with Iran as May backs present deal
BRITAIN, France and Germany have demanded European companies be spared from US sanctions imposed on Iran after Donald Trump’s decision to pull out of the nuclear agreement with Tehran plunged the transatlantic relationship into crisis.
The sanctions could force Iran to withdraw from the nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), the “E3” countries wrote in a letter to Steven Mnuchin, the treasury secretary, and Mike Pompeo, the secretary of state.
The JCPOA was a painstakingly constructed international agreement 12 years in the making, which gradually removes long-standing economic sanctions on Iran in exchange for evidence that it is denuclearising.
The E3 and the EU have vowed to continue the sanctions relief and uphold the deal. “An Iranian withdrawal from the JCPOA would further unsettle a region where additional conflicts would be disastrous,” the letter said. “As allies, we expect that the US will refrain from taking action to harm Europe’s security interests,” it said. “As close allies we expect that the extraterritorial effects of US secondary sanctions will not be enforced on EU entities and individuals.”
After the nuclear deal was struck, European companies, many of them SMES but also large multinationals such as Total and Boeing, moved to trade and invest in Iran.
Any company that invested in Iran after the JCPOA was implemented in January 2016 should be exempted from sanctions and businesses that want to pull out of Iran should be granted extended winding down periods, the letter, which has been seen by The Daily Telegraph, said. It demands “public assurances” from the US that sectors such as pharmaceuticals and healthcare will not be hit by sanctions, with further exemptions in the energy, automotive, civil aviation and infrastructure sectors as well as banking and financing channels.
Theresa May reiterated the UK’S commitment to the Iran deal when she met Benjamin Netanyahu, her Israeli counterpart, in No 10 yesterday.
The Prime Minister said: “Along with France and Germany, the UK continues to believe that is the best route to preventing Iran from getting a nuclear weapon. We will remain committed to it as long as Iran meets its obligations.
“But we do recognise that there are other issues that need to be addressed in relation to Iran – its destabilising regional activity in countries like Syria and Yemen and also the proliferation of ballistic missiles.” She was also “concerned” about Palestinian deaths during recent clashes at the Gaza border, saying: “I hope we can talk about how to alleviate that situation.”
‘As close allies we expect that the ... effects of US sanctions will not be enforced on EU entities and individuals’