European businesses in Iran wont be supported by EU Investment Bank
The European Investment Bank (EIB) backs away from plans to support European businesses in Iran while under pressure from the US. The move comes ahead of a meeting today at which European commissioners are expected to encourage the EIB to support investments by European businesses in Iran.
The EIB has never done business in Iran before but according to Reuters, asking the EIB to invest in Iran has “symbolic value as EU officials see it as one of the easiest to deliver on in response to Iran’s demands that it show proof of its commitment to the nuclear deal.”
“Under the current circumstances, the EU’s political will is not enough to preserve the nuclear deal,” Zarif said last month after meeting EU ministers in Brussels.
However, “the bank is unhappy with the Commission proposal because the bank raises funds on US markets”.
Almost a third of EIB lending is dollar denominated, exposing the bank to potential US sanctions, which will begin to take effect in August.