On the Hypocrisy of the New EU Sanction Regime
Once upon a time the European Union rejected secondary sanctions which the U.S. used to press third party countries to follow its sanction regimes against other once:
Making use of the centrality of the US in the global economy, it has imposed ‘secondary sanctions’ on foreign firms, which are forced to choose between trading with US sanctions targets or forfeiting access to the lucrative US market. In addition, the US has penalized foreign firms for breaching US sanctions legislation.
To counter these extraterritorial measures the EU introduced a blocking mechanism:
The lawfulness of these sanctions could be contested before various domestic and international judicial mechanisms, although each mechanism comes with its own limitations. To counter the adverse effects of secondary sanctions, third states and the EU can also make use of, and have already made use of, various non-judicial mechanisms, such as blocking statutes, special purpose vehicles to circumvent the reach of sanctions, or even countermeasures.
Blocking statutes prohibit EU companies from complying with U.S. sanctions:
Pursuant to Art. 5(1) of the EU Blocking Regulation, EU operators are prohibited from complying “with any requirement or prohibition, including requests of foreign courts, based on or res
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