European Union companies could face legal action over Iran contracts

European companies doing business with Iran could face legal troubles if they have terminated their contracts with Iranian banks or firms solely because of fears about possible US sanctions, according to a legal opinion handed down Wednesday by a top EU court advisor.

The case centres around then President Donald Trump’s 2018 decision to unilaterally pull the United States out of the Iran nuclear agreement. The move sparked a series of U.S. sanctions, some of them meant to prevent companies from doing business with Iran.

To protect European interests and help Iran’s moribund economy, the EU introduced a blocking statute shielding companies in the 27-nation bloc.