EU says launches bid to block effects of US sanctions on Iran

The European Commission began work Friday on a series of measures to shield European companies investing in Iran and support Tehran's economy, in the hope of salvaging the Iran nuclear deal following the US decision to withdraw.

Following last week's announcement by US President Donald Trump, the European Union has pledged to stick to the 2015 deal, which is meant to prevent Iran from developing nuclear weapons in return for the lifting of sanctions that had stifled its economy.

"As long as the Iranians respect their commitments, the EU will of course stick to the agreement of which it was an architect," said European Commission President Jean-Claude Juncker, while warning that the US decision to reimpose sanctions "will not be without effect."

To counter the impact of US sanctions, the commission began work Friday to update the so-called blocking statute - legislation that forbids EU companies from complying with the sanctions and allows them to recover any damages suffered.

The aim is to have the measure in effect before the first batch of US sanctions kicks in on August 6, the EU's executive said in a statement.

It also aims to allow the European Investment Bank to finance activities in Iran, noting that this would be particularly useful for smaller firms.

EU leaders reaffirmed their commitment to the nuclear deal at a summit in the Bulgarian capital Sofia this week, even as multinationals such as the French energy giant Total and Danish shipping company Maersk Line signalled their intention to pull out of Iran.