(Reuters] – European businesses can cancel contracts with Iranian corporations under pressure from U.S. sanction if the agreements lead to “disproportionate economic losses,” said the EU’s top court on Tuesday.

After Deutsche Telekom terminated a 2018 contract, the telecommunications provider had to issue a judgment by the European Court of Justice in Luxembourg (ECJ).

Hamburg’s Higher Regional Court must decide whether Deutsche Telekom, who makes around half its revenues with Bank Melli, would be able to uphold the Bank Melli contract.

The Hamburg court is yet to decide when it will take its final decision.

Trump, then the United States president, unilaterally rescinded the Iran nuclear accord and reimposed sanctions on Iranian firms that had been lifted under 2015’s agreement.

The European Union signed a “blocking law” to prevent individuals or companies from violating the U.S. sanctions in an effort to save the nuclear agreement and the economic benefits it brings Iran.

Tuesday’s court supported the EU blocking statute. It stated, “The prohibition imposed under EU law on Iran complying with secondary sanctions imposed on it by the United States may be used in civil proceedings.”

The judges said that the block statute rules “cannot be infringed the freedom of conducting a business…by leading disproportionate economic losses”.

However, Hamburg judges have to consider that Deutsche Telekom has not applied for an exemption from EU blocking statutes’ rules.