BRUSSELS: The EU launched formal steps Friday aimed at sparing European firms fallout from US sanctions on Iran as part of efforts to preserve the nuclear deal with Tehran.
The move to invoke the “blocking statute” had received the all-clear at a meeting of European Union leaders in Sofia on Thursday as the transatlantic rift deepened.
The European Commission, the EU executive, said Friday it “launched the formal process to activate the blocking statute by updating the list of US sanctions on Iran falling within its scope.”
US President Donald Trump last week controversially pulled Washington out of the 2015 international deal with Iran that placed limits on its nuclear program in return for easing economic sanctions.
The “blocking statute,” which EU member states and the European Parliament must still endorse, is aimed at easing the fears of European companies that invested in Iran after the deal.
“The blocking statute forbids EU companies from complying with the extraterritorial effects of US sanctions, allows companies to recover damages arising from such sanctions from the person causing them, and nullifies the effect in the EU of any foreign court judgments based on them,” the commission said.
The commission said it hopes to have the measure in force before Augut 6 when the first batch of US sanctions take effect.
The commission also launched “the formal process to remove obstacles for the European Investment Bank (EIB) to decide under the EU budget guarantee to finance activities outside the European Union, in Iran,” the executive said.
“This will allow the EIB to support EU investment in Iran,” it added, noting the measure could help small and medium-sized companies.
The “blocking statute” is a 1996 regulation originally created to get around Washington’s trade embargo on Cuba, which prohibits EU companies and courts from complying with specific foreign sanction laws, and says no foreign court judgments based on these laws have any effect in the European Union.
However, the Cuba row was settled politically, so the blocking regulation’s effectiveness was never put to the test, and its value may lie more in becoming a bargaining chip with Washington.
EU moves to shield EU firms from US sanctions against Iran
EU moves to shield EU firms from US sanctions against Iran
- The move to invoke the “blocking statute” had received the all-clear at a meeting of European Union leaders in Sofia on Thursday as the transatlantic rift deepened
- The commission said it hopes to have the measure in force before Augut 6 when the first batch of US sanctions take effect
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
