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Dear Europe: Grow a Backbone on Something Important, Defy Trump on Sanctions

We find out later today what Trump will do with Iran. If Europe had a clue, it would ignore the sanctions.

Europe Grovels

  • Total SA, the French oil giant, is hoping it can hold on to its $1 billion deal to develop an offshore natural-gas field, even if there are new U.S. sanctions. It argues it signed the deal when there were no U.S. or European sanctions in place. And it says it has effectively ring fenced the project from any of its U.S. operations. For instance, it has kept all U.S. computer software out of the project, according to people familiar with the matter. It has also excluded its American employees from working on it.
  • Total Chief Executive Patrick Pouyanne has informally asked French officials to intervene with the Trump administration to secure a waiver for the project, called South Pars, if sanctions return, according to one of the people.
  • Royal Dutch Shell PLC signed a 2016 contract to sell petrochemical technologies to Iranian partners. The company sent a top manager to Iran in April to reassure Iranian officials it remained committed to the country, as long as its business was still permitted under any new U.S. sanctions, according to a person familiar with the matter. Last year, it generated $6.3 million in gross revenue from its Iran petrochemical business, according to the company’s annual report.
  • French car manufacturer Renault SA RNO and Franco-German plane maker Airbus SE EADSY have each met French trade and finance officials early last month to seek clarity on any possible sanctions, according to a person familiar with the matter.

Why Bother?

Why should every country in the world be forced to go along with every absurd US sanction?

The simple solution is for Europe to tell Trump flat out, "Go to Hell". It is absurd to let Trump sets sanction policy for the world!

There is no case for sanction and there is no case for for a US-sponsored regime change in Iran.

Mike "Mish" Shedlock

Hang tough.
The Caliphate will

Strength is weakness. EU needs exports so it kow-tows to US AND Iran. Nothing but a bunch of wh@res that can't decide which pimp they prefer.

What if Iran is not to be trusted and is acting in bad faith?

does the Eu voluntarily comply with US unilateral sanctions? What are the consequences if a allied nation does not
follow implementation ?

The problem is that American sanctions are so far-reaching. Europe can say it won't comply, but that puts its companies in the line of fire. What happens when the US starts fining Total, Shell, and Renault millions of dollars a day for violating US sanctions?
That will likely be followed by yanking US licenses from these companies, and then prohibiting Visa and Mastercard, and any bank that uses them from doing business with these companies. We know banks will comply, just as they put up with the outrageous FATCA law today. What then? Until Europe is decoupled from the American financial system with its own credit cards and independent banking system outside of the US, the US makes the rules.

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