Blocked Out: Why The EU Will Struggle To Counter US Sanctions With Blocking Legislation

There has been much discussion in recent days about the EU using so called "blocking legislation" to counter the reintroduction of US secondary sanctions against Iran, as it did in 1996 with US sanctions against Cuba. The potential trans-Atlantic battle of legislation did not materialise then because of a political resolution of the differences. But a precedent was set. Can it work again now?

The model is Regulation 2271/96 which was passed in 1996 to "counteract the effects of the extra-territorial application" of US sanctions under the Helms Burton Act (Cuba) and Iran and Libya Sanctions Act.

The old US Cuba sanctions imposed requirements on non-US persons to cease trafficking (i.e. dealing) in Cuban property formerly owned by US persons or potentially face judgments from US courts to pay compensation. The Iran and Libya sanctions prevented investments in Iran or Libya that could significantly contribute their development of petroleum resources.