European Union-Iran Relations

Reaction to June 2009 Iranian Presidential Election:

In June, 2009, the European Union presidency, at that time held by the Czech Republic, expressed its concerns regarding irregularities in the re-election of Iranian President Mahmoud Ahmadinejad as well as the violence that followed the vote. In a statement released on June 14, 2009, the EU presidency indicated that it hoped Iran "will take its responsibility towards international community [sic] and respect its international obligations."[1]

Nuclear:

The European Union has stated that it supports the right of all countries to develop nuclear energy for peaceful purposes as dictated by the Nuclear Non-Proliferation Treaty and in compliance with the International Atomic Energy Agency.[2]   According to the website of the European Union, the EU doubts the entirely peaceful nature of the Iranian nuclear program.  The EU has supported a dual track approach, offering financial and technological incentives if Iran agrees to cooperate while voting in favor of UNSC sanctions as long as Iran refuses:

“The discovery in 2003 of nuclear activities undisclosed by the Iranian authorities to the IAEA casts serious doubts about the character of Iran’s nuclear programme as does the reluctance of Iran to cooperate proactively with the IAEA…However, in October 2003, in the light of a general approach defined by the European Council, France, Germany and the United Kingdom launched a diplomatic effort aimed at resolving the issue through negotiations. They were joined in 2004 by the EU High Representative offering the support of the whole EU. In 2005, in June 2006, and again in May 2008, they presented far-reaching proposals to the Iranian authorities which would help Iran to develop a modern civil nuclear power programme, whilst meeting international concerns about its peaceful nature…The June 2006 proposal was offered by Germany, France, United Kingdom, China, Russia and the USA. If Iran would take up this offer, it could also benefit from far reaching cooperation with the EU, as repeatedly stated by the European Council...

[Iran refused and the UN Security Council] adopted four subsequent resolutions (N° 1696, 1737, 1747 and 1803). Resolution N° 1803, voted in March 2008, as all the previous resolutions, requested Iran to suspend all enrichment-related and reprocessing activities and heavy water-related projects, and to take steps to build confidence regarding the nature of its nuclear programme. The restrictive measures, set out in resolutions N° 1737, 1747 and 1803, are aimed at preventing mainly Iran’s acquisition of nuclear and ballistic missile material, equipment and technology which can be used for military programmes. However, in line with the policy of a dual-track approach, the June 2006 proposal - which has been renewed in May 2008 - is still offered to Iran.  The EU has repeatedly stated its full support for all efforts to find a negotiated solution on this basis.”

In February 2009, the EU3 – France, Germany, and the United Kingdom – proposed a list of stricter sanctions against the Islamic Republic. This proposed list has not been favorably received by the entire European Union, however.  Five members of the EU – Austria, Cyprus, Greece, Spain, and Sweden – have objected to the increased sanctions against Iran.[3]

In December 2009, European Union governments announced in a draft statement that they will set a seven-week deadline for Iran to return to negotiations over its nuclear program or face stiffer sanctions.[4]  The draft stated that “Iran’s persistent failure to meet its international obligations and Iran’s apparent lack of interest in pursuing negotiations require a clear response, including through appropriate measures. The European Union stands ready to take necessary steps.”[5]

In January 2010, European Union Chief Diplomat Catherine Ashton announced that the EU governments are moving toward a confrontation with and potential punishment of Iran for flouting international oversight of its nuclear program, adding that the world cannot let Iran stall for time as tensions build in the Middle East.[6]

In February 2010, Spiegel Online announced that the EU is preparing tough sanctions against Iran’s energy and financial sectors aimed at forcing Iran to back down in the nuclear dispute.[7] The EU wants to massively ratchet up the pressure on Tehran – and the instruments have already been prepared. Allegedly, behind the scenes, EU finance and trade experts have worked out a confidential catalogue of possible sanctions.[8] 

In March 2010, during the EU Foreign Ministers’ pastoral retreat, Finnish Foreign Minister Alexander Stubb said that there was consensus enough in the EU for imposing unilateral sanctions on Iran for their nuclear activity, as the UN resolution is not expected to be ready until June of 2010, with the risk that it will not even be passed at that time.[9] He added that “Failing [UN sanctions], I think there is an emerging consensus inside the European Union that we wil take some unilateral measures from the EU side… What those exact measure are have not been discussed in detail.”[10]

In May 2010, European Union Foreign Policy Chief Catherine Ashton agreed to meet with Tehran to discuss Iran’s nuclear policy.[11] In the past, Ashton stated that was committed to what is referred to as the “twin-track” approach in dealing with the Iran nuclear situation.[12] This approach involves a nuclear-fuel swap deal in which Iran would send a certain amount of its low-enriched uranium to Turkey and receive its higher-grade fuel from Russia and France. Since her initial statements, Ashton has continually criticized the Iranian regime for their irresponsible behavior concerning nuclear weapons.[13] Ashton stated in an address to the Arab League that the European Union’s “position is based on the firm belief that an Iran with nuclear weapons risks triggering a proliferation cascade throughout the Middle East. This is the last thing that this region needs. A nuclear weapons-free Middle East remains a European goal.”[14]

In June 2010, EU leaders agreed upon a new set of sanctions against Tehran’s nuclear program.[15] The sanctions will focus on primarily economic issues that can cripple Iran’s oil industry including “shipping and air cargo companies, dual-use products that could be utilized as part of the nuclear program, trade insurance and financial transactions.”[16]

In early July, Iranian chief nuclear negotiator Saeed Jalili sent a letter to EH Foreign Affairs Chief Catherine Ashton requesting that talks resume. Shortly thereafter, Ashton responded saying that the EU would welcome a resumption of talks but that the focus would be on Tehran’s nuclear program. Ashton stated, “I am glad to hear that [Jalili] would be prepared to restart dialogue. It follows that issues relating to the Iranian nuclear programme must be the focus of our talks, though other subjects … could also be raised.”[17]

In late July 2010, the EU adopted a fresh set of sanctions aimed at Iran’s areas of trade, financial services, energy and transport.[18] EU foreign policy chief Catherine Ashton said of the sanctions, “We have a comprehensive set of sanctions. This is something where we have all 27 countries working together.”[19]

Economic Relationship:

The EU as a whole is Iran’s biggest trading partner despite voting in favor of sanctions against the Islamic Republic’s nuclear program since 2005.  In 2007, EU exports to Iran totaled about 10 billion euro (over $12.5 billion) and EU imports from Iran totaled 13.8 billion euro (about $17.5 billion).  Iran is the sixth largest supplier of energy to the EU, and 90 percent EU imports from Iran are energy and energy related products.  In the last two years, European exports to Iran have declined by 10 percent as a result of UN and EU sanctions against Iran’s nuclear program.[20]

As of June 2009, a BBC Facts and Figures account reported that Iran’s primary trading partner was the EU at 24.3% of its total import and exports with China, Japan, South Korea and Turkey following respectively.[21]

Diplomatic/Military Relationship:

Iran and the EU currently have limited political relations as a result of the EU and international community’s concerns over Iran’s nuclear enrichment program.[22]  

“There is great potential for deeper relations between Iran and the EU. Whilst practical cooperation between the EU and Iran already exists, the scope is currently well below potential. The limits of our cooperation reflect ongoing concerns in the EU and international community, chiefly connected to Iran’s nuclear programme. The EU is also following the situation of human rights closely.  The European Commission has no Delegation in the Islamic Republic of Iran (IRI) but is nevertheless working in close collaboration with the EU member states embassies in Tehran. [23]”

In June 2009, following the detention of several employees of the British Embassy in Tehran by Iranian security forces, EU foreign ministers condemned Iran’s actions, saying that “harassment or intimidation of foreign or Iranian staff working in embassies will be met with a strong and collective EU response.”[24] On June 29, 2009, European Union member states collectively threatened to withdraw their ambassadors from Iran if Tehran refused to release the four British embassy employees detained by the government.[25] Following weeks of such tension after the re-election of Iranian President Mahmoud Ahmadinejad, Iranian Foreign Ministry Spokesman Hassan Qashqavi denied rumors that Iran planned to cut ties with any European nation, saying that "shutting down of any embassy or downgrading of diplomatic ties with any country is not on Iran's agenda at the moment…the Islamic Republic has no plans for lowering its ties with any European state…”[26]  In July 2009, Iran's Armed Forces Chief of Staff Major General Hassan Firouzabadi said that "[g]iven the interference of the block (in Iran's unrests) and its over enmity towards the Iranian nation and also considering that the EU foreign Policy Chief (Javier Solana) who has never had a firm stance (on Iran) and has never been supported by the (EU) member states, now appears to be a supporter of the rioters in Iran, (the EU) has totally lost the competence and qualifications needed for holding any kind of talks with Iran." Firouzabadi added that Europeans do not “have the right to speak of negotiations before apologizing for their obvious mistakes and showing their regret in practice" and described the EU as a failed political-economic treaty.[27]

On July 3, 2009, Germany and Italy rejected British and Czech calls for European Union members to temporarily recall their ambassadors from Iran, however the EU agreed to collectively summon Iran’s ambassadors in Europe and consider other measures, such as a visa ban on Iranian diplomats.[28] In July 2009, French President Nicolas Sarkozy backed the United Kingdom’s calls for firm EU action, arguing that a strong response was required “so that Iranian leaders will really understand that the path that they have chosen will be a dead end."[29] 

In March 2010, EU foreign ministers called on Iranian authorities to seize their Internet and satellite broadcasting censorship.[30] They added that “the EU is determined to pursue these issues and to act with a view to put an end to this unacceptable situation” of electronic interference and a lack of the right to freedom of expression.[31] It was reported that European ministers would consider halting exports to Iran of equipment “for intercepting private conversations and censoring the Internet.”[32]

Member States:

Austria

Belgium

Bulgaria

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia

Lithuania

Luxembourg

Malta

Netherlands

Poland

Portugal

Romania

Slovakia

Slovenia

Spain

Sweden

United Kingdom

Candidate States:

Croatia

Republic of Macedonia

Turkey