Jumping into a block in C

If I jump into a block like in this example, jumping "over" the declarations,

#include <stdio.h>

int main(int argc, char *argv[]){
  int counter = 0;
  goto jump;
  {
    static int st = -9;
    int au = -9;
jump:
    printf("st = %d\n", st);
    printf("au = %d\n", au);
    au++;
    st++;
    counter++;
  }

  if(counter < 10) goto jump;

  return 0;
}

I can compile it with gcc --std=c89 -pedantic.

It seems that you can't really jump "over" declarations: the variables are still declared, even if the lines in which those declarations are made are never reached.

But somehow you can jump over definitions...

1. st as a static variable gets initialized with the value -9 and counts up to 0.
2. au gets initialized with the value 0 and counts up to 9.

Is 1. and/or 2. a behavior which is necessitated by the C standard?