It seems like the European Commission is about to "reactivate" an old Council Regulation, as soon as this Friday. This so called "blocking law" forbids companies operating within the EU to follow US sanctions. It was first implemented to combat US sanction on Cuba in 1996.

This has a high potential impact on the business of many EU companies and EU - US trade in general. In 1996, President Clinton tried to avoid a confrontation with the EU and no sanctions where put on EU companies. We all know Trump might react different.

It also means, that EU companies will be prohibited from stopping to trade with Iran, e.g. Airbus.

Article 4 No judgment of a court or tribunal and no decision of an administrative authority located outside the Community giving effect, directly or indirectly, to the laws specified in the Annex or to actions based thereon or resulting there from, shall be recognized or be enforceable in any manner.

Article 5 No person referred to in Article 11 shall comply, whether directly or through a subsidiary or other intermediary person, actively or by deliberate omission, with any requirement or prohibition, including requests of foreign courts, based on or resulting, directly or indirectly, from the laws specified in the Annex or from actions based thereon or resulting therefrom.

The full text of the EC 2271/96 can be found here: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:31996R2271

(Under "Summary of legislation" you can view a TL;DR.)

Source for the title: https://www.reuters.com/article/iran-nuclear-eu-response/eu-to-start-iran-sanctions-blocking-law-process-on-friday-idUSL5N1SO4W2

What do you think? If this actually passed tomorrow, will we see a response in the market? A sanction-"war" between the US and the EU could be tough. If the US just accepts this EU regulation, EU companies might profit.

欧盟启用“阻断法令” 或将无视美国制裁