Following the re-imposition of United States' sanctions against Iran on August 7, the US has been adamant to exert its utmost pressures on Tehran to enter comprehensive negotiations with Washington, while the EU has been following measures to salvage the Iran nuclear deal US pulled out of in May.
Europe has promised to compensate possible losses incurred by European companies working with Iran in case they are affected by the United States' sanctions. But how effective EU's measures are likely to be?
Hours after renewed U.S. sanction were implemented U.S. President Donald Trump once again threatened European companies to leave the Iranian market to avoid the sanctions.
One consequence of Trump's threat was that German auto giant Daimler halted its business activities in Iran hours after Trump vowed to block any company operating in Iran from selling in the vast U.S. marketplace.
"We have suspended our already limited activities in Iran in accordance with the applicable sanctions," a Daimler spokeswoman said on August 7.
Many European companies stopped their activities in Iran during the weeks before the implementation of renewed sanctions.
While the EU vowed to provide funds for any fines European companies might incur, Emadi says, "Currently EU's compensation fund is around 14 billion Euros. That is enough for paying the penalty for three or four cases, and then the fund will run out," Emadi further elaborated.
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