ITALY WILL NOT FOLLOW USG IN DESIGNATING IRANIAN

C O N F I D E N T I A L ROME 001417 SIPDIS ISN/CPI: MCGEEHAN ISN T NEA/IR E.O. 12958: DECL: 11/19/2018 TAGS: KNNP MNUC IR GM PREL PARM EFIN SUBJECT: ITALY WILL NOT FOLLOW USG IN DESIGNATING IRANIAN EXPORT BANK REF: STATE 114408 Classified By: Deputy Chief of Mission Elizabeth Dibble for reasons 1.4 (b) and (d). ¶1. (C) On 29 October, Econoff delivered reftel demarche to Romana Piscitelli, of the Italian Treasury's Financial Sanctions Unit, concerning the U.S. designation of the Export Development Bank of Iran and three other entities under E.O. ¶13382. Piscitelli said Italy follows only UN and EU rules - not those of the US - and Italy would not be willing to designate the Export Development Bank of Iran or related entities. Piscitelli allowed, however, that the GOI could pay extra attention to these institutions in ways that fall short of freezing assets. Econoff also delivered the demarche to Gianluca Alberini, Counselor for Nonproliferation Finance at the Italian MFA, who noted the quarrel between the EU and US over what the former deems "unilateral sanctions," was longstanding. Alberini said all decisions to freeze assets must made at the EU, vice national, level. SPOGLI