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

25.02.2026 | Deal Notifications

KPMG Law and KPMG advised Senstar on the acquisition of Blickfeld

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Senstar group (Senstar) on the acquisition of all shares in Blickfeld GmbH (Blickfeld).…

20.02.2026 | KPMG Law Insights, Legal Financial Services

Consumer Credit Directive (CCD II) tightens rules for the banking industry

The revised Consumer Credit Directive fundamentally reorganizes the consumer credit business. From November 20, 2026, an extended scope of application and significantly stricter requirements will…

20.02.2026 | In the media

Guest article in PERSONALFÜHRUNG: Between tradition and transformation – HR in SMEs

The German SME sector is an exciting learning field for other organizations. Its structural characteristics not only shape the way decisions are made, but also…

19.02.2026 | Deal Notifications

KPMG Law advises DKB Finance and DKB Kreditbank on the sale of FMP Forderungsmanagement Potsdam to LOANCOS

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) provided comprehensive legal advice to DKB Finance GmbH and DKB Kreditbank AG on the sale of FMP Forderungsmanagement Potsdam…

17.02.2026 | KPMG Law Insights

Establishing complaint management – guidelines for companies and administration

Complaints are great. They show unvarnishedly where processes, communication or services are not working. And even if they initially seem stressful for everyone involved, those…

16.02.2026 | KPMG Law Insights

Tenancy law reform 2026 sets tighter framework conditions for landlords

The planned 2026 tenancy law reform limits furnishing surcharges, caps index-linked rents, cuts short-term rental models and tightens the obligations for landlords. The aim is…

16.02.2026 | Deal Notifications

KPMG Law and KPMG advise the majority shareholders of Kahl GmbH & Co. KG on the sale to the Dutch Paramelt Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) have advised the majority shareholders of Kahl GmbH & Co KG (Kahl), based in…

11.02.2026 | In the media

KPMG Law Statement in Die Stiftung – Magazin für Stiftungswesen und Philantrophie: Foundation with question marks

The number of foundations with legal capacity in Germany has been growing for many years. According to a recent survey by the Association of German…

11.02.2026 | KPMG Law Insights

Embedded insurance: What companies should consider when structuring the legal framework

Insurance that fits seamlessly into the purchasing process of a product – such as an extended warranty for an electronic device or travel insurance directly…

05.02.2026 | KPMG Law Insights

AWG amendment provides for tougher penalties for sanction violations

Due to the ongoing Russian war of aggression against Ukraine, the EU wants to make it easier to prosecute violations of EU sanctions. The corresponding…

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

© 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