FX.co ★ EU to protect European firms doing business with Iran

The European Union voiced concerns over the reintroduction of US sanctions against Iran, saying it is willing to defend interests of European companies doing legitimate business with Iran. The bloc will use the so-called "blocking statute", which will come into effect on August 7.

According to the European Commission, the "blocking statute" bans EU companies from complying with US sanctions, so they can compensate for losses caused by sanctions, as well as have some other exemptions.

EU representatives also expect that Tehran will comply with the terms of the 2015 nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA).

Washington is set to reimpose sanctions against Iran in two stages, with the first round taking effect on August 4 and the second one - on November 6, 2018. The first batch of sanctions targets Iran's automotive industry, as well as trade in gold and other metals. The next wave will cover the country’s energy sector and its central bank’s transactions.

The White House administration warned that the US could impose even tougher sanctions against Tehran than those that were lifted under the 2015 nuclear accord.