Once upon a time the European Union rejected secondary sanctions which the U.S. used to press third party countries to follow its sanction regimes against other once:

Making use of the centrality of the US in the global economy, it has imposed ‘secondary sanctions’ on foreign firms, which are forced to choose between trading with US sanctions targets or forfeiting access to the lucrative US market. In addition, the US has penalized foreign firms for breaching US sanctions legislation.

To counter these extraterritorial measures the EU introduced a blocking mechanism:

The lawfulness of these sanctions could be contested before various domestic and international judicial mechanisms, although each mechanism comes with its own limitations. To counter the adverse effects of secondary sanctions, third states and the EU can also make use of, and have already made use of, various non-judicial mechanisms, such as blocking statutes, special purpose vehicles to circumvent the reach of sanctions, or even countermeasures.

Blocking statutes prohibit EU companies from complying with U.S. sanctions:

Pursuant to Art. 5(1) of the EU Blocking Regulation, EU operators are prohibited from complying “with any requirement or prohibition, including requests of foreign courts, based on or resulting, directly or indirectly” from a set of foreign sanctions laws deemed to apply extraterritorially by the European Union, “or from actions based thereon or resulting therefrom.” The laws in question are listed in the Regulation’s Annex; currently, all are US statutes. Art. 5(2) provides that the European Commission (the Commission) may, upon request, authorize EU operators to comply fully or partially with these laws, to the extent that noncompliance would seriously damage their interests or those of the European Union.

In 2018, the Commission updated the Annex of the EU Blocking Regulation to include the (reimposed) US secondary sanctions against Iran. It also adopted an Implementing Regulation laying down the criteria that would be taken into account for the granting of compliance authorizations, and issued a Guidance Note on the application of the reactivated EU Blocking Regulation.

The blocking statute was used to reject sanctions the U.S. instated against Iran after the U.S. left the nuclear agreement.

Now however, the conflict in Ukraine has seemingly killed any resistance in the EU against illegal acts from the U.S. In fact the EU has now gone mad and is itself considering the introduction of extraterritorial measures against countries which do not follow its own sanction regime against Russia:

The European Union is discussing a new sanctions mechanism to target third countries it believes aren’t doing enough to prevent Russia from evading sanctions, particularly those that can’t explain spikes in trade of key goods or technologies, according to people familiar with the matter.

The primary aim of the tool would be to deter countries from helping Russia and crack down on trade channels that Moscow may be exploiting, the people said. If that doesn’t work, the bloc would have the option as a second step of imposing targeted restrictions on key goods.
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The new enforcement mechanism, aspects of which were first reported by the Financial Times, would give member states the authority to create two lists — one of affected third countries and the other of banned goods.

If the mechanism is approved by national governments, decisions on which countries and goods to list would be for member states to take unanimously, the people said. The measures were unlikely to target China at first, but focus mostly on nations in central Asia and Russia’s immediate neighbors, the people added.

Elsewhere, the proposed package would make it easier to sanction companies in third countries that are circumventing the EU’s sanctions.

The EU politicians and bureaucrats in Brussels are killing their own moral defense against the U.S. application of secondary sanctions against third parties.

How will they ever be able to again argue for their own blocking statute. Moreover what will they do when third party countries, like Turkey or China, introduce their own blocking statutes against secondary EU sanctions on their companies?

Reprinted with permission from Moon of Alabama.