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Legal Matters

Iran sanctions to deal heavy blow to Italy

Rome, Italian weekly magazine L'espresso in its latest edition on Tuesday said that an end to trade transactions with Tehran would deal a severe blow to Italy.

It said the United States is using sanctions weapon against Iran and Russia as a leverage to put pressures on the two countries.

The Italian magazine wrote that with the US President Donald Trump's decision to withdraw his country from Iran deal known as the Joint Comprehensive Plan of Action (JCPOA) and reinstate sanctions on Iran, confrontation with Tehran's regional activities has been dragged to Europe.

For Italy, L'espresso said, an end to trade ties with Iran will be a heavy blow because commercial agreements and memoranda of understanding worth 27 billion euro have been signed by Italian and Iranian firms which are now exposed to US sanctions.

While the Europeans are busy finding a way to save the JCPOA, Washington is going ahead with its foreign policy which is based on use of force and not diplomacy, the weekly said.

Europe is considering to buy Iranian crude oil in euro directly from the Central Bank of Iran but such measures would not protect European firms from the US secondary sanctions and in case they continue doing business with Tehran they will be deprived of American markets, L'espresso wrote.

In January, former Italian economy minister Pier Carlo Padoan and Iranian Deputy Minister of Economy and Financial Affairs Mohammad Khazaei inked an agreement in Rome on opening of a 5-billion-euro credit line by the Rome government for those Italian firms interested in working in Iran, it said, adding that the agreement was quite within the framework of the JCPOA and similar to other agreements Iran had signed with South Korea (worth eight billion dollars), Austria (one billion dollars) and China (10 billion dollars).

However, Italy later suspended the agreement in the wake of pressures from the United States and Israel or in other words a small windows which had been opened in the wake of Trump's decisions was closed, the Italian magazine said.

Source: Islamic Republic News Agency - IRNA

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