Amendment of the Blocking Regulation 2271/96 in August 2018

Thursday, 06. September 2018

Since 7 August 2018, the delegated implementing regulation 2018/1100 is effective and extends the Blocking Regulation 2271/96 to the reintroduced (or partially still forthcoming) sanctions of the USA against Iran.

Therefore, the following U.S. acts and regulations have been included in the Annex to the Blocking Regulation:

Acts:

 

  • National Defense Authorization Act for Fiscal Year 1993, title XVII — Cuban Democracy Act 1992, Sections 1704 and 1706
  • Cuban Liberty and Democratic Solidarity Act of 1996
  • Iran Sanctions Act of 1996
  • Iran Freedom and Counter-Proliferation Act of 2012
  • National Defense Authorization Act for Fiscal Year 2012
  • Iran Threat Reduction and Syria Human Rights Act of 2012

Regulations:

 

  • Iranian Transactions and Sanctions Regulations
  • C1 1. 31 CFR chapter V (7-1-95) Part 515 — Cuban Assets Control Regulations, subpart B, E and G.

US President Donald Trump's statement on 8 May 2018 that the US would unilaterally withdraw the Joint Comprehensive Plan of Action (JCPOA) and reinstate the temporarily suspended or still suspended acts and the sanctions prior to the conclusion of the JCPOA triggered this amendment by the EU. For its part, however, the EU is maintaining its foreign policy approach towards Iran and is not joining the US in its withdrawal. Therefore, the above-mentioned US extraterritorial measures against Iran are now listed in a new Annex to the Blocking Regulation.

As a result, conflicts between European and US law may arise in the future. In this context, affected person(s) should note the following:

 

  1. If a decision (including court judgments and arbitral awards) is rendered by a third country on the basis of acts listed in the Annex to the Blocking Regulation or acts or provisions adopted pursuant to them, these are declared invalid in the EU (see Art. 4).
  2. If an EU operator suffers damage as a result of the application of the extraterritorial acts listed in the Annex to the Blocking Regulation, he or she has the possibility of claiming compensation from the natural or legal person who caused the damage (see Art. 6).
  3. To ensure compliance with the prohibition of boycott declarations pursuant to Section 7 AWV, an application may be made for permission to comply in whole or in part with the listed extraterritorial acts. The precondition is that otherwise the interests of the EU operator or those of the Union would be seriously harmed (see Art. 5 para. 2).

Further information can be obtained from Christoph Oertel.

Back