An Investigation into Role of Secondary Sanctions in the European Union’s Approach to JCPOA (2015-2021)

Document Type : Research Paper

Authors

1 Faculty of Administrative Sciences and Economics, Isfahan University, Isfahan, Iran

2 Faculty of Social and Educational Sciences, Razi University, Kermanshah, Iran.

3 Faculty of Law and Political Sciences, Mazandaran University, Babolsar, Iran

Abstract

Important international players, including the US, have always used sanctions as one of their crisis management tools, particularly secondary sanctions that target third parties and are extraterritorial in nature rather than being official like primary sanctions. The US had increased secondary sanctions against Iran since 2012 to halt Iran's nuclear program. These sanctions persisted until the JCPOA when most secondary sanctions were lifted and many foreign companies resumed their businesses in Iran. However, after Trump was elected president and unilaterally withdrew from the JCPOA in 2018, the secondary sanctions were re-imposed in an intensified manner. Despite its opposition to the US approach, the European Union (EU) has recalled its companies from Iran following the US withdrawal from the JCPOA. Therefore, the main question of this study is as follows: How did the US secondary sanctions against Iran affect the EU’s approach to the JCPOA? The hypothesis was evaluated through a descriptive-analytical method in response to this question within the framework of secondary sanctions. Accordingly, the US hinders the EU’s independent approach by imposing secondary sanctions against European companies, banks, and private sector in general. The results indicate that the EU cannot act independently of the US to resolve major international issues (e.g., the JCPOA) due to the structure of secondary sanctions. In fact, if the EU contradicts the general policies of the US toward Iran, the US will impose different sanctions on European entities. It will also place the EU’s private sector under pressure.

Keywords

References

 
Aftalion, M (2019). INSTEX, a Game Change, Report of the European Union (EU) Non-Proliferation and Disarmament Consortium.
Bamri, M (2017). JCPOA and its effect on the economic relations between Iran and the Republic of Iran, Journal of Research of Nations, Volume 1, Issue 30, Pages 43-61.]In Persian[
Banihashemi, S; Heidarpour, M; kiani, D (2022). The JCPOA and the continuation of the conflicting approaches of the Islamic Republic of Iran and the United States, World Politics A Quarterly Jounal, Volume 11, Issue 2, Pages 269-295.]In Persian[
Bartlett, J; Ophel, M (2022.08.26).. Sanctions by the Numbers: U.S. Secondary Sanctions, Extract date: 2023,06.02, https://www.cnas.org/publications/reports/sanctions-by-the-numbers-u-s-secondary-sanctions.
Bie, E;. Bombach, K; Urlus, H; Hardy, R (2022.10.09). Conflicting EU, US Economic Sanctions Regimes: Implications for Multinational Companies, Extract date: 2023,06.04, https://www.gtlaw.com/en/insights/2022/2/conflicting-eu-us-economic-sanctions-regimes-implications-for-multinational-companies
Council on Foreign Relations, Excerpt: Economic Sanctions and American Diplomacy(2020.08.05). Extract date: 2020.10.16, https://www.cfr.org/excerpt-economic-sanctions-and-american-diplomacy
Deputy of Economic Diplomacy of the Ministry of Foreign Affairs of the Islamic Republic of Iran (2018.05.23). Managing the Challenge of Secondary Sanctions by the European Union, extraction date: 2023.05.13, https://economic.mfa.ir. ] In Persian[
Early, B; Preble, K (2018.01.09). Enforcing Economic Sanctions: Analyzing How OFAC Punishes Violators of U.S. Sanctions, SUNY University at Albany, Extract date:2020.08.11, https://ssrn.com/abstract=3306653, pp. 1- 50.
European Union ExternalmAction, (2018.04.15). Iran and the EU, Extract date:2020.11.02, https://eeas.europa.eu
Eyes on Europe (2018.07.12). The Iranian nuclear deal: the challenge of the European Union, Extract date: 2020. 12.03, https://www.eyes-on-europe.eu
Fisch, E; Junck, Ryan D.; Robertson, E; Albrecht, M; Kolke, v; McGoldrick, V (2022.01.27). Navigating the Future Landscape of the EU Blocking Statute, Extract date: 2023,05.25, https://www.skadden.com/insights/publications/2022/01/navigating-the-future-landscape-of-the-eu-blocking-statute
Greenberg, E;  Krischik, O (2018.11.08). U.S. Re-imposes Sanctions on Iran Following the U.S. Withdrawal from the JCPOA and the End of the Wind-Down Period, Extract date: 2023,05.05, https://www.gkglaw.com/news_events/544-us-re-imposes-sanctions-iran-following-us-withdrawal-from-jcpoa-and
Gheibi, P (2022). The Rise and Fall of U.S. Secondary Sanctions: The Iran Outcasting and Re-Outcasting Regime, Georgia Journal of International and Comparative Law, Volume 50, Issue 2, Pages 389-440.
Iranian Diplomacy, (2013.05.30). 16 ways of Iran to bypass sanctions, extraction date: 30/11/ 11400, http://www.irdiplomacy.ir/fa/news /1905713/16.] In Persian[
Lowy Institute (2018.01.09). European companies driven out of Iran, Extract date:2020.09.08, https://www.lowyinstitute.org
Lsaev, L (2018.08.11). The Middle East after the US`s Withdrawal from the Iran Nuclear Deal, Extract date:2020.08.19, www.ridl.io
Mesbahi Jahormi, N (2018). Europe's financial measures against secondary US sanctions, Master's thesis, Faculty of Law, Shahid Beheshti University. ] In Persian[
Misai, Q; Religionist, F; Jafari, M; Golestan, M (2016). Media Diplomacy and Nuclear Negotiations of J.A.A, Culture-Communication Studies Quarterly, Volume 18, Issue 38, Pages 133-154. ] In Persian[
Moehr, O (2018.09.25). Secondary Sanctions: A First Glance, Extract date:2020.07.23, https://www.atlanticcouncil.org
Omidi, A; Mehdizadeh, R; Mahmoudi Raja, S (2016). Examination and analysis of the application of the scenario-building approach in the future of the foreign relations of the Islamic Republic of Iran (case study of the 11th government and the European Union), Quarterly Journal of Strategic Studies of Public Policy, Volume 6, Issue 20, Pages 36-36 15. ] In Persian[
Osiewicz, P (2018). EU-Iran Relations in the Post-JCPOA Period: Selected Political Aspects, Adam Mickiewicz University, Volume 1, Issue 1, Pages 153-163.
Perthes, V (2018.02.28). Withdrawing from the nuclear deal is a major blunder – the E-3 must pick up the baton, Extract date:2020.08.18, http://www.german-times.com
Piri, M; Sohrabi, R (2019). U.S. extraterritorial sanctions in relation to Iran and its compatibility with the rules of the World Trade Organization, Public Law Studies Quarterly, Volume 50, Issue 4, Pages 1565-1545. ] In Persian[
Posch, W (2009.12.09). The European Union and Iran, Extract date:2020.09.19, https://www.mei.edu
Qamat, J; Pourgoshchi, M (2015). The Consequences of the Nuclear Agreement on the Relations between the Islamic Republic of Iran and the European Union, International Relations Studies Quarterly, Volume 9, Issue 35, Pages 165-188. ] In Persian[
Ranjbar, G; Sori, H(2020). The American wave and its impact on the global security order, Political Sociology, Volume 3, Issue 2, Pages 1166-1185. ] In Persian[
Rezaei Pish Rabat, S (2015). Reflection on the legal achievements of JCPOA, Strategic Studies Quarterly, Volume 1, Issue 2, Pages 83-106. ] In Persian[
Rostami, F; Ahmadiyan, G; Karimi, H (2018). An analysis of the strategic relations between the European Union and the United States, in the light of the Iran nuclear deal; Ahead scenarios, Strategic Policy Research Quarterly, Volume 7, Issue 28, Pages 267-239. ] In Persian [
Rostami, F; Bahramipour, F (2017). Analysis of the trend of political-economic relations between Europe and the Islamic Republic of Iran in the aftermath of the JCPOA, Regional Studies Quarterly, Volume 4, Issue 6, Pages 39-53. ] In Persian [
Ruys, T; Ryngaert, C (2020). Secondary Sanctions: A Weapon out of Control? The International Legality of, and European Responses to, US Secondary Sanctions, Published by Oxford University Press.
Sagin, V (11/07/2018). Sanctions were imposed against Iran, what now?, extraction date: 10/10/2014, https://ir.sputniknews.com. ] In Persian [
Schwarzenberg, A (2018). U.S. Trade with Major Trading Partners, Congressional Research Service.
Stoll, T; Blockmans, S; Hagemejer, J; Hartwell, C; Gott, H; Karunska, K; Maurer, A (2020). Extraterritorial sanctions on trade and investments and European responses, European Parliament.
Sultoon, S; Walker, J (2019). Secondary Sanctions’ Implications and the Transatlantic Relationship, Global Business & Economics Program (GBE), Volume 1, Issue 1, Pages 1-15.
Tehran Times (2019.11.29). Iran-EU trade at €3b in 7 months, Extract date:2020.06.03, https://www.tehrantimes.com
Therme, C (2019.11.07). The rise of tensions between Iran and Europe: the Trump factor, Extract date:2020.09.11, https://www.iiss.org
U.S. Department of the Treasury (2021.03.11). OFAC Consolidated Frequently Asked Questions, Extract date:2021.04.19, https://home.treasury.gov
U.S. Department of the Treasury (2018.12.30). Re-imposition of the sanctions on Iran that had been lifted or waived under the JCPOA, Extract date: 2021.02.19, https://www.treasury.gov
Wald, E (2018.07.23). 10 Companies Leaving Iran As Trump's Sanctions Close In, Extract date:2021.10.09, https://www.forbes.com
Wintour, P (2018.01.28). UK, Germany and France urg US not to tear up Iran nuclear deal, Extract date:2021.01.29, www.theguardian.com
World Economic Forum (2018.09.20). Do secondary sanctions work?, Extract date:2021,02.19, https://www.weforum.org
 

Files

Share

How to cite

Statistics