MNA – The European Investment Bank (EIB) has backed away from previous plans to support European businesses in Iran due to US economic sanctions against Iran.
The European Investment Bank has ‘balked’ at EU plans to work in Iran after coming under pressure from the United States, Reuters reported on Tuesday.
The move comes ahead of a meeting on Wednesday 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.
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,” Reuters continued.
However, “the bank is unhappy with the Commission proposal because the bank raises funds on US markets,” according to Reuters.
Almost a third of EIB lending is dollar denominated, exposing the bank to potential US sanctions, which will begin to take effect in August.
“This isn’t going to be easy,” an EU diplomat told Reuters, “the bank is well aware of the dangers of U.S. sanctions on its own operations.”