Regulation (EC) No 2271/96
The EU Blocking Statute
The Regulation of 22 November 1996 prohibits companies and persons in the EU from complying with the foreign sanctions laws listed in its annex. Judgments based on them are not recognised in the EU; anyone harmed can claim damages. Those affected must inform the Commission within 30 days. Anyone who must deviate applies for an authorisation.
From the start its annex listed US laws on Cuba, Iran and Libya; since 2018 the renewed US sanctions on Iran have also been listed. On 22 November 2026 the Regulation turns 30.
Source: Reg. (EC) No 2271/96, OJ L 309, 29 Nov 1996; Delegated Reg. (EU) 2018/1100 of 6 Jun 2018
Court of Justice of the EU, Case C-124/20
The Bank Melli Iran ruling
On 21 December 2021 the Court ruled in Bank Melli Iran v Telekom Deutschland: the prohibition on compliance applies even where no US authority has issued an order.
Where the evidence suggests at first sight that a termination served to comply with foreign sanctions, the company must show otherwise in court; the prohibition does not, however, require reasons for a termination in every case. At the same time the courts examine whether the prohibition places a disproportionate burden on the company.
Source: CJEU (Grand Chamber), judgment of 21 Dec 2021, C-124/20, ECLI:EU:C:2021:1035
UN Security Council, 9 December 2022
Resolution 2664: the humanitarian exemption
The Resolution provides that funds, goods and services necessary for the timely delivery of humanitarian assistance or for other activities that support basic human needs do not violate UN asset freezes. It applies to UN programmes and agencies, to humanitarian organisations with observer status at the General Assembly and to certain non-governmental organisations.
It applies to all UN sanctions regimes; for the ISIL (Da’esh) and Al-Qaida regime initially for two years. It was put forward by Ireland and the United States. 14 members voted in favour; India abstained.
Source: UN Security Council, Resolution 2664 (2022), 9214th meeting, 9 Dec 2022; Security Council Report, Dec 2022