Page 5 - IRANRptJun18

2.0 Politics
2.1 US, Europe on collision course as Trump ‘hard exists’
from Iran nuclear deal
Progress made by EU in shielding companies from US sanctions aimed at
Donald Trump on May 8 announced that he was pulling the US out of the Iran nuclear deal and reimposing the heaviest sanctions on Tehran, declaring: “When I make promises I keep them.” Dismayed by the American president’s decision to take the ‘nuclear option’ in abandoning the multilateral accord, many of Trump’s critics were not slow in replying: “The same cannot now be said for America.”
Whatever the rights and wrongs of the move it leaves Washington and the five other signatories who in late 2015 agreed to the deal with Tehran—the UK, France, Germany, Russia and China—on a collision course with the Trump administration. And, just for starters, Iran’s plans to source $200bn of investment for its oil, gas and petrochemical industries and spend $38bn on Boeing and Airbus aircraft purchases may be doomed.
The US Treasury said economic sanctions would not be reimposed on Iran immediately, but would be brought in subject to 90-day and 180-day wind-down periods. In a statement, it said sanctions would target industries including Iran's oil sector, aircraft exports and precious metals trade, and Iranian government attempts to buy US dollar banknotes.
Following Trump’s announcement, US National Security Advisor and foreign policy hawk John Bolton told reporters that the US Treasury Department would allow up to 180 days for foreign companies that do business with Iran to end their contracts or face sanctions.
But the immediate response from Europe’s Big Three was a joint statement from UK Prime Minister Theresa May, German Chancellor Angela Merkel and French President Emmanuel Macron in which they emphasised their "continuing commitment" to the deal, formally called the Joint Comprehensive Plan of Action (JCPOA). "We encourage Iran to show restraint in response to the decision by the US; Iran must continue to meet its own obligations under the deal, co-operating fully and in a timely manner," they added, while also urging the US not to obstruct Europe's attempt to adhere to the JCPOA.
In his initial response to Trump’s rejection of continued US participation in the JCPOA, Iran’s President Hassan Rouhani—a pragmatic and centrist politician now more exposed to the hardliners in Iran who say he was wrong to ever trust the Americans—did evidence restraint. Even though he said he had “ordered the Atomic Energy Organisation of Iran to be ready to start the enrichment of uranium at industrial levels” he qualified that statement by saying that “we will wait a few weeks and speak with our allies and those committed to JCPOA. All depends on our national interests”.
France’s Foreign Minister said on May 31 that the EU has made some progress in drawing up measures to shield member state companies from US sanctions aimed at Iran but that they remained inadequate.
5 IRAN Country Report June 2018 www.intellinews.com