The European Union has decided to activate a blocking statute in an effort to protect EU companies from the extraterritorial effects of U.S. sanctions against Iran. The blocking statute would threaten penalties against EU companies that cut business ties with Iran because of U.S. sanctions. The European Investment Bank will be allowed to facilitate investment in Iran by European companies, including by issuing loans that private banks are not willing to provide. The process for activating the blocking statute is expected to take up to two months and will require action by the European Parliament and the EU Council.