BRUSSELS (Reuters) - The European Union vowed on Monday to counter U.S. President Donald Trump’s renewal of sanctions on Iran, in a test of the EU’s ability to preserve a deal that saw Iran limit its nuclear ambitions in exchange for removing strict curbs on its economy. As Washington’s so-called “snapback” sanctions are reinstated on Tuesday, a new EU law to shield European companies will also take effect to try to mitigate what EU officials say is their “unlawful” reach beyond U.S. borders. The EU and other parties to the 2015 deal, China and Russia, are working to maintain trade with Iran, which has threatened to stop complying with curbs on its nuclear work if it fails to see the economic benefits of relief from sanctions under the deal. A statement Monday by European Union foreign policy chief Federica Mogherini and foreign ministers of France, Germany and the United Kingdom insisted that the 2015 Iran nuclear deal "is working and delivering on its goal" of limiting Iran's nuclear program. EU officials hope the EU’s so-called blocking statute will mitigate the impact of U.S. sanctions for business, including by deterring U.S. authorities from enforcing some penalties. The measure will allow European businesses affected by sanctions to sue the American government in European member state courts, and require European businesses to receive a waiver if they plan to activities in Iran. The new measure forbids EU persons from complying with U.S. sanctions or related court rulings and allows for firms to sue in court to recover potential damages from parties who withdraw from contracts due to U.S. sanctions.
The European Union announces that its blocking statute against the US sanctions will take effect tomorrow, protecting European companies from US sanctions and encouraging them to keep trading with Iran.