On August 6, 2018, the United States re-imposed the first set of economic sanctions on Iran as part of its exit from the 2015 Joint Comprehensive Plan of Action (JCPOA). These initial sanctions included the ban of transactions with Iran using US banknotes, precious metals, passenger aircraft, and Iranian-made products like carpets and automobiles. The second wave of sanctions, which will include penalties to companies in third countries that continue to do business with Iran and sanctions against Iranian oil, is scheduled to take effect on November 4, 2018. In response, the European Union (EU) issued an updated Blocking Statute “to protect EU companies doing legitimate business with Iran from the impact of US extra-territorial sanctions.” The Blocking Statute allows affected EU companies to sue the US for damages, but also allows suits against EU companies that back out of Iran. Although the EU’s countermeasures have taken the spotlight, the Rising Powers aren’t taking the development lying down. Read more here.
