US Sanctions and Iran's Nuclear Plans

What is the issue?

What is Iran's stance?

Iran said that it was in “preparatory works” to restart nuclear activities.
This is in the event of the failure of the 2015 accord.
In such a scenario, Iran could restart its activities without any limits.
The preparatory works mentioned refer to steps to boost uranium enrichment capacity by producing new centrifuges.
In addition, it had notified of a plan to restart activity at its uranium conversion facility to produce the UF6 feedstock for centrifuges.

What are the other developments in this regard?

France, Britain, Germany and the EU have sent a joint official request to the U.S.
It asks for their companies to be exempt from punitive measures resulting from fresh U.S. sanctions on Iran.
It calls for exempting European businesses doing legitimate trade in Iran from all extraterritorial American sanctions.

What are the implications?

Iran’s notification illustrates the risks associated with the recent U.S. withdrawal from the nuclear deal. (Click here to know more).
According to the deal, Iran can enrich uranium, but under tight restrictions.
It would not be technically violating the agreement as long as it does not produce centrifuges.
But the move to open a production facility could be seen as a provocative step by the remaining parties to the agreement.
The other signatories to the deal said they remain committed to the agreement.
But they are yet to come up with a framework to continue the deal.
The latest Iranian announcement could pressurise the European powers.
They are forced to come up with guarantees that the deal’s benefits will be in place even with U.S. sanctions.

What is the way forward?

It is uncertain if European companies would make investments in Iran, or even continue to do business, with U.S. sanctions.
Earlier, they had discussed providing companies that do business with Iran, special financing from the European Investment Bank.
Passing legislation to protect them from U.S. sanctions was also discussed.
Concrete decision on these fronts are not yet taken and the EU is wary of giving any guarantee to Iran.
The way forward is to continue a dialogue to find an economic and legislative package.
This has to shield European companies and Iranian economic interests from U.S. sanctions.

Source: The Hindu