On 22 November 1996 the Council of the European Union adopted a regulation against the effects of foreign sanctions laws. It is still in force, yet rarely applied. Taking stock on the anniversary.
Cuba was the reason
In 1996 the United States passed the Helms-Burton Act. It is expressly aimed at companies from third countries that do business with Cuba. The EU responded the same year with Regulation (EC) No 2271/96. Its annex lists the Cuban Democracy Act of 1992 and the Helms-Burton Act, and from the start also US laws on Iran and Libya. In 2018 the renewed US sanctions on Iran were added. So the reason was Cuba, not Iran, even if today Iran dominates the discussion.
What it protects
The regulation prohibits companies and persons in the EU from complying with the listed laws. Judgments based on them are not recognised in the EU. Anyone harmed by the application of these laws can claim damages. Anyone whose interests are affected must inform the European Commission within 30 days. Anyone who must deviate in an individual case applies for an authorisation.
On 21 December 2021 the Court of Justice of the EU interpreted the rules in Bank Melli Iran v Telekom Deutschland: the prohibition applies even if no US authority has ordered anything. A termination without reasons shortly after a US listing can be invalid. At the same time the courts examine whether the prohibition places a disproportionate burden on the company.
What it does not protect
The regulation does not open access to the US market and does not cancel any US penalty. For a European bank, access to the US financial market weighs more than a small Cuba business. So it often follows the market rather than the law. The prohibition is enforced mainly when someone affected sues; systematic enforcement by authorities is largely absent. The working paper “Das Schutzrecht, das schweigt” (The protective law that stays silent) puts it this way: the protective law is not silent because it is missing, but because it is not enforced.
A second hurdle, to be seen separately
Anyone who works with Cuba meets not only European banks but also a slow Cuban administration in which decisions are pushed upwards. This hurdle exists independently of the European gap. Both are real, they have different causes, and solving one does not solve the other.
On the anniversary
On 22 November 2026, the Sunday of the Dead (Totensonntag), the regulation turns 30. On that day the week “Helfen statt Blockieren” holds conversations with guests about it at the Heilige-Geist-Kirche in Berlin-Moabit; beforehand, the online workshops W2 and W10 cover the topic.
Sources
- Council Regulation (EC) No 2271/96 of 22.11.1996, OJ L 309, 29.11.1996, p. 1
- Commission Delegated Regulation (EU) 2018/1100 of 6.6.2018; Implementing Regulation (EU) 2018/1101
- CJEU (Grand Chamber), judgment of 21.12.2021, C-124/20, Bank Melli Iran, ECLI:EU:C:2021:1035
- Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (Helms-Burton); Cuban Democracy Act 1992
accessed 2 November 2026