Europe clearly isn’t happy that Trump pulled us out of the Iran deal and are planning to potentially block US sanctions on Iran using some obscure law:
FREE BEACON – European countries are currently examining a range of options to counter the reimposition of harsh U.S. sanctions on Iran in a bid to continue doing business with the Islamic Republic, a move that is being met with chilly reception on Capitol Hill, where lawmakers are already putting in place measures to ensure that any European nation caught skirting U.S. sanctions faces harsh repercussions, according to a new policy paper being examined by lawmakers and viewed by the Washington Free Beacon.
European Union members are seeking to reimplement an old law known as the blocking statute, which orders European companies to ignore U.S. sanctions on Iran.
The move sets up a showdown between the United States and Europe over the future of business dealings with Iran in the wake of President Donald Trump’s decision to walk away from the landmark nuclear deal and reimpose wide-ranging and severe sanctions on the Islamic Republic.
Iran opponents on Capitol Hill are already moving to respond, according to multiple sources who shared with the Free Beacon a newly developed policy memo that maps a plan for the United States to potentially sanction the European Investment Bank, or EIB, and cut its access to the U.S. financial system. The policy paper was written by Richard Goldberg, a senior adviser at the Foundation for Defense of Democracies.
“There is no statute that can save a European company from losing its access to the U.S. financial system,” the policy memo states. “European companies will not be willing to violate U.S. sanctions even with the revival of the blocking statute.”
European companies will be forced to make a choice between doing business with Iran and retaining access to the U.S. financial system.
“French President Emmanuel Macron Thursday conceded that European companies should be allowed to decide for themselves what to do without an EU order,” the memo notes. This suggests that whatever blocking statute is announced Friday will be largely symbolic.
It could get even worse for Europe…
The Trump administration could invoke the 2013 Iran Freedom and Counter-Proliferation Act, a wide-ranging law that could be interpreted in such a manner that would sanction European companies for providing material support to the globe’s foremost state sponsor of terror.
The law “requires the president to block the assets of any person who knowingly provides financial or material support to any activity related to Iran’s port operators, its energy, shipping, and shipbuilding sectors, and any Iranian company or official listed on Treasury’s Specially Designated Nationals list,” according to the policy memo, which is being examined by multiple offices on Capitol Hill. “The Trump administration could interpret this section to apply to any EIB director who votes to provide such support—and to any member of the Management Committee who implements it.”
Administration insiders familiar with the United States’ efforts to ensure European nations cut ties with Iran told the Free Beacon the EU is fighting a losing battle to counter new U.S. sanctions.
“The Europeans are acting more like a Heaven’s Gate cult, locking arms and willing to eat the apple sauce rather than break off business with the world’s leading state sponsor of terrorism,” said one source familiar with the strategy. “Treasury this week designated the governor of Iran’s central bank—does any European country think Treasury can’t designate their own central bank governor too?”
I think in the end Europe will buckle before they turn this into a huge showdown – at least I hope. They should know by now we aren’t bluffing about sanctioning them if they continue to do business with Iran.
But Europe isn’t the only player. I fully expect Turkey to buck the US on this and continue to trade with Iran, which means they will likely be sanctioned sooner than later.