Search
Contact
27.07.2018 | KPMG Law Insights

Foreign Trade Law & Export Control – The US withdrawal from the JCPOA and the reactivation of the Blocking Statute by the EU – Implications for European Companies in Foreign Trade

The U.S. withdrawal from the JCPOA and the reactivation of the Blocking Statute by the EU – Implications for European Companies in Foreign Trade

On May 8, 2018, U.S. President Donald J. Trump announced that he would terminate U.S. participation in the nuclear agreement reached with Iran – the Joint Comprehensive Plan of Action (JCPOA).

Following the U.S. withdrawal from the nuclear deal and the expiration of a wind-down period, the financial and economic sanctions imposed by the U.S. against Iran are to be gradually reinstated. Within the wind-down periods, which are 90 and 180 days and end on August 6, 2018 and November 4, 2018, respectively, companies should wind down and terminate existing business relationships in Iran.

After the end of the first wind-down period on August 6, 2018, sanctions related to foreign exchange and commodity trading, as well as against the Iranian automotive industry, among others, will come back into force. Finally, after the expiration of the second wind-down period, i.e., on November 4, 2018, sanctions against the oil industry, the energy sector, and the financial and insurance industries will revive. For example, the U.S. is already pushing for a global import ban on Iranian oil and has announced it will not make exceptions for the European Union (EU).

Response by the EU

The U.S. withdrawal from the Iran nuclear deal has drawn criticism. The EU, as well as the other signatories of the agreement, have explicitly expressed their support for the preservation of the nuclear agreement with Iran and want to maintain their economic relations in Iran.

To save the nuclear deal, the EU Commission has initiated the formal procedure to reactivate the so-called Blocking Statute (Regulation (EC) No. 2271/96). This anti-boycott provision aims to prevent the extraterritorial application of U.S. sanctions. The Blocking Statute thereby criminalizes participation in the Iran sanctions imposed by the U.S. on companies, but at the same time provides for the possibility of applying for exemptions.

The law is scheduled to take effect before August 6, 2018, the end of the first wind-down period.

Implications for exporting companies

However, European companies operating internationally are thus faced with the dilemma that compliance with the European anti-boycott regulation simultaneously leads to a violation of U.S. embargo provisions. This is compounded by the fact that failure to comply with U.S. sanctions can lead to serious consequences and drastic fines for companies. In addition, past experience has shown that the U.S. administration also consistently takes action against embargo violations by foreign companies.

The Blocking Statute, on the other hand, has not yet been applied in the past. The dispute at the time over sanctions against Cuba, Iran and Libya was settled. In this respect, it remains to be seen how the situation will develop and how the EU, in the event of a violation of the anti-boycott regulation, will react.

Explore #more

16.12.2025 | In the media

Interview with KPMG Law experts: CSDDD after the omnibus: “Toothless tiger” or pragmatic solution?

The agreement on the Omnibus I package is causing discussion. Among other things, the thresholds for the EU Supply Chain Directive (CSDDD) have been significantly…

12.12.2025 | KPMG Law Insights

Focus offshore: NRW buys extensive tax data on international tax havens

According to recent press reports from December 11, 2025, the state of North Rhine-Westphalia has purchased an extensive data set with tax-relevant information from international…

12.12.2025 | Deal Notifications

KPMG Law advises The Chemours Company on the implementation and closing of a large-volume factoring financing

KPMG Law Rechtsanwaltsgesellschaft GmbH (KPMG Law) advised the US-American Chemours Company on the implementation of a cross-border factoring financing. The legal implementation was managed by…

11.12.2025 | KPMG Law Insights

First omnibus package to relax CSDDD, CSRD and EU taxonomy obligations

Negotiators from the EU Parliament and the Council have now reached an agreement on the outstanding points of the first omnibus package. The content of…

11.12.2025 | KPMG Law Insights

IPCEI-AI: Requirements for funding and evaluation criteria

On December 5, 2025, the Federal Ministry for Economic Affairs and Energy launched the expression of interest procedure for the “IPCEI Artificial Intelligence” (IPCEI-AI) funding…

11.12.2025 | In the media

Interview in TextilWirtschaft – What the relaxed EU supply chain law means for the industry

After weeks of debate, the weakened form of the CSDDD has now been adopted in Brussels. This brings new, complex legal uncertainties for companies, says…

02.12.2025 | KPMG Law Insights

Implementation of the Pay Transparency Directive: what the expert commission recommends

The EU Pay Transparency Directive has been in force since June 2023 and must now be transposed into German law. In the coalition agreement,…

28.11.2025 | In the media

KPMG Law Guest article Expert forum on employment law: Between theory and practice: The EU Blue Card and the right to short-term mobility within the EU

Nowadays, not only employees but also employers want to create more attractive working conditions. For some time now, so-called workstations / work-from-anywhere programs or other…

26.11.2025 | KPMG Law Insights

EU deforestation regulation forces companies to act

Anyone who trades in or uses the raw materials soy, oil palm, cattle, coffee, cocoa, rubber and wood and certain products made from them should…

25.11.2025 | KPMG Law Insights

Special infrastructure assets: how the administration manages to implement projects quickly

The special infrastructure fund creates the opportunity to catch up on years of investment backlog. There is a need for urgency. Defence capability, economic growth…

Contact

Dr. Konstantin von Busekist

Partner
Head of Global Compliance Practice
KPMG Law EMA Leader

Tersteegenstraße 19-23
40474 Düsseldorf

Tel.: +49 211 4155597123
kvonbusekist@kpmg-law.com

Anne-Kathrin Gillig

Partner
Frankfurt am Main Site Manager
Head of Compliance and Business Criminal Law

THE SQUAIRE Am Flughafen
60549 Frankfurt am Main

Tel.: +49 69 951195013
agillig@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll