EU Reverses Sanctions on Iranian Tech Firm After Tensions Rise

EU Reverses Sanctions on Iranian Tech Firm After Tensions Rise featured

Brussels, Tuesday, April 16, 2024 – The European Union on Monday, April 8 announced that it was lifting the sanctions on Iranian tech startup ArvanCloud, saying it no longer sees a need to keep them in place. 1

The EU had accused the company of involvement in Tehran’s internet crackdown in November 2022 and imposed the sanctions. 2

The decision, made on April 4, came less than two years after the sanctions were imposed, with no explanation provided.

While ArvanCloud remains under U.S. and British sanctions, it welcomed the EU’s move, attributing it to presenting legal and technical documents to challenge the sanctions before the European Court of Justice.

An EU official, speaking anonymously, stated that member states agreed to the reasons for keeping ArvanCloud on the sanctions list no longer exist.

However, critics express concern over the lack of transparency in the process, with advocates questioning the opportunity for civil society involvement.

A leaked document suggests Iranian President Ebrahim Raisi’s government supported ArvanCloud’s court case.

Meanwhile, the United States maintains sanctions on the company, citing its role in facilitating censorship and close ties to Iran’s Intelligence Ministry.

Despite the EU’s decision, enduring U.S. sanctions may deter business with ArvanCloud, observers say.

The Iranian technology firm was previously accused of aiding internet censorship, a move overshadowed by a dramatic escalation in tensions between Israel and Iran.

Sources
  1. Sanctions on Iranian Tech: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202401019&qid=1712315264593[]
  2. Sanctions on Iranian Tech: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2022:293I:FULL&from=EN[]
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