On 3 September, the EU published a report on Council Regulation (EC) No 2271/96 (aka the “Blocking Statute”).  This covered a number of aspects of the Blocking Regulation, including the extra-territorial effects.  It points out the reason for the Blocking Statute is that some jurisdictions (e.g. the US) apply some of their sanctions extra-territorially i.e. they expect citizens and companies of third countries, including EU countries to act in accordance with them). As a matter of principle, the EU considers the extra-territorial application of sanctions contrary to international law.  The Blocking Statute was first enacted in 1996 and has subsequently been amended, and its main potential use is in respect of US sanctions on Cuba and Iran.  The report describes the structure and use of the Blocking Statute, details notifications received by the Commission, and aims to provide an overview of the effects caused by the extra-territorial application of non-EU countries’ sanctions.  The report is based on information provided to the Commission under this procedure and, as such, it is not exhaustive and cannot address cases not reported to the Commission.  The chief purpose of the Blocking State is, of course, to limit or prevent damage to economic and financial interests.  The EU had undertaken a public consultation, which closed on 30 August

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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