Dáil Éireann Debate, Thursday - 17 May 2018
47. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the impact that increased US sanctions on Iran will have; the estimated impact of such sanctions on Ireland in terms of trade; and if he will make a statement on the matter. [21845/18]
View answerThe United States has begun the process of reimposing those US sanctions on Iran which had been suspended under the nuclear agreement with Iran, the JCPOA, from which the US has regrettably withdrawn. They will come back into force over a period of three to six months. The US Government has also stated an intention to impose additional sanctions.
It is difficult to estimate the impact these actions will have, at this early stage.
The JCPOA was a multilateral agreement which remains in operation despite the US decision, and which retains the full support of Ireland and the EU. All the other parties to the agreement have said that they intend to continue to implement it. The UN and EU sanctions on Iran, which were directly in force in this country and which were removed under the JCPOA, will therefore not be reimposed.
The US sanctions which had caused the most difficulty for Irish firms seeking to do business in Iran were those in the financial sector, and for the most part these were not suspended under the JCPOA and had remained in operation. This had led to a continued reluctance of many European banks, including Irish banks, to handle funds originating in Iran. This had undoubtedly slowed the regrowth of trade with Iran following the JCPOA. This will continue to be a factor.
The effect of any new US sanctions cannot be estimated until they are known, but there is certainly concern at EU level over possible extra-territorial impact of US sanctions on EU firms doing business with Iran. This has already been discussed with Iran by EU Ministers this week, and will be an issue which will be followed closely at EU level in the period ahead.
