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

13.08.2026 | KPMG Law Insights

Federal Ministry of Finance Presents Draft Bill on Mandatory Use of Electronic Cash Registers and Combating Tax Evasion

In July 2026, the Federal Ministry of Finance (BMF) and the Federal Ministry of Justice (BMJV) presented an action plan to combat tax and financial

11.08.2026 | In the media

Guest article in *Versicherungsmonitor* on the topic of cyber claims regulation

Cyberattacks—particularly ransomware campaigns—pose challenges for insurers when it comes to claims settlement. When entire IT infrastructures at insured companies come to a standstill and the…

11.08.2026 | KPMG Law Insights

Transparency Requirements Under Article 50 of the AI Act: Companies Should Address These Questions Now

The transparency requirements of the EU AI Act have been in effect since August 2, 2026. These obligations apply to chatbots, AI assistants, avatars, synthetic…

10.08.2026 | In the media

Op-Ed on the Procurement Acceleration Act and Sustainable Public Procurement

On April 23, 2026, the Bundestag passed the Act on Accelerating the Award of Public Contracts. After the Act was published in the Federal Law…

05.08.2026 | Deal Notifications

KPMG Law and KPMG Advise NMP Germany on the Acquisition of Klöckner Desma Elastomertechnik GmbH

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised NMP Germany GmbH on the legal, tax, and financial aspects of the transaction…

04.08.2026 | In the media

Portrait of Mathias Oberndörfer in the *Börsen-Zeitung*

Mathias Oberndörfer has been with KPMG for more than 20 years—reason enough for an in-depth profile in the *Börsen-Zeitung*. The Börsen-Zeitung traces his career path…

03.08.2026 | Unkategorisiert

KPMG Law und KPMG beraten NMP Germany beim Erwerb der Klöckner Desma Elastomertechnik GmbH

Die KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) und die KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) haben die NMP Germany GmbH beim Erwerb der Klöckner Desma Elastomertechnik Gruppe…

03.08.2026 | In the media

Statement by KPMG Law experts on the EU Packaging Regulation in the business magazine *impulse*

Starting January 1, 2030, packaging must consist of at least 70 percent recyclable materials. Starting August 1, 2030, so-called “deceptive packaging” will also be banned.…

30.07.2026 | KPMG Law Insights

CRD VI and Third-Country Banks: Preserving Cross-Border Access to the EU Market

From 11 January 2027, third-country banks will need to reassess whether they may continue to provide banking services into the EU on a cross-border basis.…

28.07.2026 | In the media

Op-ed in the FAZ on the topic “Who is liable when algorithms make decisions?”

Artificial intelligence has made its way into the boardroom. Whether it’s investment decisions, risk analysis, or workforce planning—the results of artificial intelligence are increasingly being…

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
Regional Manager Central
Head of Compliance and Business Criminal Law

THE SQUAIRE Am Flughafen
60549 Frankfurt am Main

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

© 2026 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