US tells European banks trade with Iran is okay - AP and Israel Hayom Staff

by AP and Israel Hayom Staff

U.S. secretary of state, EU's foreign policy chief reiterate assurances that instating ties with once-embargoed Iranian banks will not result in sanctions • "We won't stand in the way of permitted business activity with Iran," they say in joint statement.

The United States and its partners in the Iran nuclear talks are trying anew to convince European banks and businesses that now-legal trade with the Islamic republic will not be subject to sanctions.

U.S. Secretary of State John Kerry, the foreign ministers of Britain, France and Germany, and the European Union's foreign policy chief said in a joint statement Thursday that Iran deserves the sanctions relief it is due under the landmark nuclear deal signed in July 2015. 

"This includes the re-engagement of European banks and businesses in Iran," they said in a statement after meeting in Brussels.

"We will not stand in the way of permitted business activity with Iran, and we will not stand in the way of international firms or financial institutions engaging with Iran, as long as they follow all applicable laws," the statement said.

Iran has complained that U.S. sanctions that remain on the country are preventing it from receiving the full benefits of the deal, under which it agreed to curb its nuclear program in exchange for sanctions relief. The U.S. maintains it has met its obligations, but has been trying to convince foreign firms that some trade with Iran is now legal.

Thursday's statement was the latest of several attempts by the U.S. to encourage European financial institutions and other firms to take advantage of opportunities afforded by the easing of sanctions. Kerry and other top U.S. officials, including Treasury Secretary Jack Lew, have tried to assure foreign banks that transactions with Iran that do not involve still-sanctioned entities are not illegal under U.S. rules.

But many European and Asian banks are still balking at doing business with Iran due to non-nuclear U.S. sanctions that remain. Those sanctions relate to Iran's designation as a state sponsor of terrorism, human rights record and testing of ballistic missiles.

They are also concerned that the relief offered by the Obama administration may be rescinded by the next U.S. president. They want assurances in writing that deals they may make or coordinate with Iran will not punished.

The U.S. has been reluctant to offer this blanket assurance and officials have pointed out that it cannot force private companies to do business with Iran, particularly because of other concerns such as its antipathy toward Israel and poor banking regulations. Nonetheless, some Iranian officials have threatened to pull out of the nuclear deal for what they say are violations by the U.S.

Thursday's statement sought to ease those complaints, noting that the U.S. and European countries are "exploring possible areas of cooperation with Iran, including the use of export credits to facilitate trade, project financing and investment in Iran."

"Our governments have provided extensive guidance on the scope of sanctions lifted and those that remain in place and will continue to do so," it said. The statement added that foreign businesses may be more assured by changes in Iranian government behavior.

AP and Israel Hayom Staff

Source: http://www.israelhayom.com/site/newsletter_article.php?id=33801

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