Frustration is growing amongst European politicians, diplomats and businesspeople over the failure of Washington to repeal US legislation that effectively means sanctions that could be applied to letter of credit (L/C) transactions with Iran are still in place.

Three months after the lifting of many sanctions against Iran, the main obstacle, the Europeans say, is Washington.

Lingering concerns

European banks in the main are refusing to finance any of the deals, although the decision for Italy's financing agencies to provide Iran with nearly EUR 5 billion in credit lines and export guarantees may provide enough confidence for some medium-sized European banks to write L/C business (DC World News, 22 April 2016).

But larger international banks are concerned that the lack of action by Washingtonm to remove sanctions is effectively perpetuating Iran's isolation from the global financial system.

Perspectives

"Europe is being taken hostage by American policy," said Marietje Schaake, the vice president of the European Parliament's Delegation for Relations With the United States. "We negotiated the nuclear deal together, but now the US is obstructing its execution."

From Iran's perspective, Washington's intransigence is jeopardising the nuclear agreement and empowering the Islamic Republic's hard-liners.

Europeans also say that US visa regulations make it more difficult for them to enter the US if they have travelled to Iran.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.