James Browne (Wexford, Fianna Fail)
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58. To ask the Minister for Foreign Affairs and Trade if the banking difficulties faced by Irish companies seeking to trade with Iran will be addressed; and if he will make a statement on the matter. [24005/18]

Simon Coveney (Cork South Central, Fine Gael)
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The United States has begun the process of reimposing those US sanctions on Iran which had been suspended under the nuclear agreement with Iran (known as the JCPOA), from which the US has regrettably withdrawn. They will come back into force over a period of three to six months. The US Government has also stated an intention to impose additional sanctions. It is difficult to estimate the impact these actions will have, at this early stage. The EU and the other parties to the JCPOA are continuing to implement the agreement, and so the UN and EU sanctions on Iran, which were directly in force in this country and which were removed under the JCPOA, will not be re-imposed. The US sanctions which had caused the most difficulty for Irish firms seeking to do business in Iran were those in the banking and financial sector, and for the most part these were not suspended under the JCPOA and had remained in operation. This had led to a continued caution by many European banks, including Irish banks, in handling funds originating in Iran. This had undoubtedly slowed the regrowth of trade with Iran following the JCPOA. This will unfortunately continue to be a factor. EU Ministers have already discussed with Iran these potential difficulties, and at the Foreign Affairs Council this week Ministers discussed options for protecting EU companies to the greatest extent possible.

However, it cannot be ruled out that some business will be affected by US measures. In the banking sector in particular the problem is principally one of commercial decisions by the banks themselves, based on their own engagement in the US financial market and their assessment of the risks of the US financial measures.