EU ready to protect European firms from US sanctions on Iran

BRUSSELS – The European Union says new measures are ready to take effect to protect European businesses from the impact of U.S. sanctions on Iran.

The measures aim to save an agreement aimed at curbing Iran’s nuclear ambitions after the U.S abandoned the pact. The EU says the pact is important for global security and is trying to keep economic and financial supply lines to Tehran open.

The EU’s executive Commission said Monday that the so-called “blocking statute” will take effect beginning at midnight Washington time (0400 GMT Tuesday).

The mechanism stops European companies from complying with the U.S. sanctions unless they have authorization from the Commission.

It also blocks the effects of U.S. court actions in Europe and allows European firms to recover damages arising from the sanctions from anyone who causes them.