EU Blocking Statute notifications ‘vary widely by member state’

The EU Commission receives most blocking statute notifications from ‘companies engaged in international trade or banking activities’, but also ‘from individuals and other entities, like associations, diplomatic missions, and business federations.’

So says a report from the Commission to the EU Parliament and Council ‘relating to article 7 (a) of Council Regulation (EC) No. 2271/96, (‘Blocking Statute’).

According to the report,

‘[I]n total, between 1 August 2018 and 1 March 2021 the Commission received 63 notifications:

• 35 related to US sanctions against Cuba; and
• 28 related to US sanctions against Iran.

‘The Commission received notifications from persons and entities based in 12 different Member States. The number of notifications received varies greatly by Member State. The Commission was made aware of 10 notifications linked to, or followed by, court proceedings before EU national courts.’

The report further breaks down ‘the notifications received by type of adverse effects reported’, including:

• ‘Adverse effects related to banking activities or other financial services: many EU persons and companies informed the Commission about adverse effects relating to access to daily banking services or unilateral terminations by a financial institution of the provision of banking services.
• Adverse effects caused by one or several business partners: EU persons and companies frequently notified the Commission about adverse effects caused by their business partners, most often due to a business partner’s decision to terminate the business relationship with the notifying party.
• Administrative and judicial proceedings in the United States: many notifications related to Cuba, and some notifications regarding Iran, reported the existence or threat of proceedings before US administrative or judiciary authorities.
• Reluctance to invest, or to engage in business in countries targeted by the listed extra-territorial laws: a limited number of EU persons and companies formally notified the Commission about their reluctance to invest, or to engage in business, in the countries targeted by the listed extra-territorial laws because they anticipated adverse effects if they were to do so.’

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:535:FIN