The European Union is on the verge of launching an alternative channel to send money to Iran, known as special purpose vehicle (SPV), that would sidestep US sanctions against the country, Germany’s foreign minister said.
Heiko Maas told reporters in Brussels on Monday that the vehicle “will be registered, it has not yet been registered, but I would say that the implementation of our plan is imminent.”
Maas said the EU’s aim is to ensure “business not sanctioned by the US can be upheld, and there is a suitable instrument for international payments.”
He said Germany has been working notably with Britain and France but also other EU partners in recent months to set it up, without providing details, AP reported.
EU member country envoys discussed Iran Monday but didn’t announce the SPV’s completion.
Europe set to announce Iran Funding Vehicle
Three key European Union nations are set to make good on a pledge to help their companies trade with Iran despite U.S. sanctions, a move that could help to salvage a nuclear deal with the Islamic Republic but may have more political symbolism than economic impact.
The announcement of the so-called special purpose vehicle (SPV) could come as soon as Monday, two diplomats familiar with the matter said, asking not to be identified as last-minute negotiations on the wording of the EU statement continued.
A draft EU statement seen by Bloomberg welcomes the initiative by U.K, France and Germany as providing “a positive impact on trade and economic relations with Iran, but most importantly on the lives of Iranian people.”
The statement is going to be discussed by EU government envoys in Brussels on Monday morning and may be released soon after, if all 28 member states approve.
The initiative reflects both European determination to uphold the Iran deal and growing concerns in Europe about the dollar’s clout in the international financial system. The mechanism is supposed help protect European companies keen to do business in Iran from U.S. sanctions that could result from dollar-based transactions.
SOURCE: BLOOMBERG
