Global Geopolitical Series: EU announces €18 million aid to Iran as sanctions bite

As American sanctions start to bite Iranian exports and developments projects with scores of European companies exiting Iran with French energy giant ‘Total’ being the latest big name to exit lucrative Iranian gas project, the European Union has announced a €18 million in development aid to Tehran to pursue it to continue with the Joint Comprehensive Plan of Action (JCPoA), better known as the Iran nuclear agreement. The EU will allocate eight million euros to Iran's private sector, including assistance for small- and medium-sized enterprises and the country's Trade Promotion Organization. Another eight million euros will be spent on environmental projects, and the rest two million euros will go into fighting harm caused by drugs. Thursday's aid offer to Iran is part of a broader package of 50 million euros earmarked for Tehran in the EU budget.

The aid was announced yesterday by the European Union’s foreign policy chief Federica Mogherini, who reaffirmed the European Union’s commitment to the agreement and determination in keeping the agreement alive without U.S. participation. The EU is currently working to maintain trade ties with Iran as the U.S. sanctions gradually come into effect.

Earlier this week, German foreign minister said that the European countries need to adopt payment systems independent of the US if they seek to keep the JCPOA in place and the UK reopened a bank account of the Iranian Embassy in the country, which had been blocked over international sanctions on Iran since 2009. The UK has also reportedly enhanced its nuclear cooperation with Iran and currently leading in redesigning the Arak heavy water reactor in central Iran.