EU approves aid for Iran to help offset US sanctions

EU approves aid for Iran to help offset US sanctions
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The European Union agreed to appropriate 18 million euros to Iran Thursday to help offset the impact of U.S. Sanctions.

The announcement of the aid, which is equivalent to $20.6 million, is part of the EU’s attempts to prop up the 2015 nuclear accords with Iran, according to Reuters.

The U.S. left the Iran nuclear deal in May and reimposed sanctions on the Tehran earlier this month.

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The EU has knocked the U.S. sanctions and forbidden European companies from complying with them. If European firms ignore the EU’s warnings, it has threatened hit them with its own sanctions.

Reuters reports that the EU’s aid agreement is part of a larger 50 million euro sum dedicated for Iran in the EU budget.

The bloc is trying to continue trade with Iran, though the country has said it will stop complying with the 2015 nuclear agreement if it does not see economic boons from the EU’s aid.

EU foreign policy chief Federica Mogherini said in a statement that the bloc is dedicated to cooperating with Iran.

“This new package will widen economic and sectoral relations in areas that are of direct benefit to our citizens,” Mogherini said.

Eight million of the EU’s euros (about $9.25 million) will go towards Iran’s private sector. That sum will fund small to medium firms as well as Iran’s Trade Promotion Organization.

An additional 10 million euros (about $10.6 million) will go into Iran’s public stores. Eight million is earmarked for environmental projects and 2 million for easing the harmful impact of drugs on the Iranian populace.