Home » World

European countries set up payment channel with Iran to bypass U.S. sanctions

02 February, 2019, 08:58 | Author: Taylor George
  • Iran's Deputy Foreign Minister Abbas Araghchi who is also a senior nuclear negotiator speaks with media in his press conference in Tehran Iran

Germany, France and Britain have launched an EU-backed system to facilitate trade with Iran to help European businesses circumvent unilateral USA sanctions on Iran. It will apparently be based in Paris, have a German banking expert at the helm, and a Brit chairing its supervisory board.

Months before the USA sanctions on Iran's oil returned, the EU pledged to create a new payment system, the so-called special-purpose vehicle (SPV), that "will assist and provide reassurance to European businesses wishing to continue trading with Iran, mitigating the effect of re-imposed United States sanctions, in accordance with European Law".

France and Germany had taken joint responsibility for the SPV.

Washington says that although Iran complied with the terms of the deal, the accord was too generous, failing to rein in Iran's missile programme or curb its regional meddling. "I hope we can also find a solution for this vehicle".

The three countries - the European signatories to the 2015 deal that curbed Tehran's nuclear ambitions in return for sanctions relief - launched the device, which has been in preparation for months, at a meeting of EU foreign ministers in Bucharest.

The head of the country's Atomic Energy Organisation, Ali Akbar Salehi, has also repeatedly warned over the past few months that Iran's "period of patience is getting more and more limited".

The measures involved are created to protect European firms from USA court action and allow them to recover any financial damages related to the sanctions.

"As the president has made clear, entities that continue to engage in sanctionable activity involving Iran risk severe consequences that could include losing access to the USA financial system and the ability to do business with the United States or U.S. companies", a spokesman for the embassy said.

It is the most ambitious attempt by European allies to save the Iran nuclear deal from collapse following President Trump's decision to withdraw from it.

Inter Milan Manager Provides Important Ivan Perisic To Arsenal Update
However, the Croatian has submitted a transfer request and wants to leave Inter amid interest from Arsenal . Inter lost this weekend away at Torino, with Perisic an unused substitute.


The three big European powers are also assessing whether to push for new sanctions on Iran over its missile program, diplomats have told Reuters.

The EU this month imposed its first sanctions on Iran since the nuclear pact was signed, in response to ballistic missile tests and assassination plots on European soil.

"It's not a "circumvention" of US sanctions or anything like that, since all this trade is permitted", said Brian O'Toole, a former USA sanctions official at the Treasury Department who is now at the Atlantic Council.

"By establishing the SPV, the E.U.is sending the Trump administration the wrong signal".

Abbas Araghchi, Iran's deputy foreign minister, told Iranian state television by telephone on Thursday that he expected the "special goal vehicle" to be ready for business in one or two months. Iranian President Hassan Rouhani, in particular, is under pressure domestically to get something out of the deal, which hard-liners at home opposed.

"We're clear: This commitment [the 2015 nuclear deal] does not in any way preclude us from addressing Iran's hostile and destabilising activities", Hunt, the British foreign minister said.

Iran is also looking to Russian Federation and China, the other signatories to the nuclear accord, to maintain trade flows in defiance of the United States.

She said entities that engage in sanctionable activity with Iran risk losing access to the USA financial system and the ability to do business with U.S. companies.

Recommended:

  • Polar vortex strikes North America

    Polar vortex strikes North America

    Calling the temperatures "dangerous", Hobart said United was bringing in extra workers and providing heated tents for employees. States of emergency have already been issued for Wisconsin, Illinois and MI with many schools and businesses shut down.
    The quadruple? That's fantasy, says City boss Guardiola

    The quadruple? That's fantasy, says City boss Guardiola

    One League One side will be in the next round after a late Ben Whiteman penalty earned Doncaster a 2-1 win over Oldham. Cup today, we win the game and get through.
    Russian Federation  probe 'close to being completed'

    Russian Federation probe 'close to being completed'

    Barr's very broad view of executive authority, especially given that we are still in the middle of the Mueller investigation". Barr also revealed a meeting with Trump at the White House on December 5 of past year , the same day of President George H.W.
  • Van Dijk asks fans to stay patient as Liverpool push for title

    Van Dijk asks fans to stay patient as Liverpool push for title

    Responding to Walker's tweet, Pep Guardiola said: "The players tweeting or social media, Instagram, I can not control it". Liverpool could see their five-point advantage over Manchester City cut before they play West Ham on Monday evening.
    Emotional Rose beats Scott at Torrey Pines

    Emotional Rose beats Scott at Torrey Pines

    Rose also won with new equipment, answering any questions about whether that would derail his No. 1 ranking. His 10th victory on the PGA Tour gave him the most of all English players, breaking a tie with Nick Faldo.
    Key Arsenal target hands in transfer request

    Key Arsenal target hands in transfer request

    Emery said the cup exit would allow his team to put all their efforts into qualifying for the Champions League. My challenge is to improve them individually, collectively, offensively, defensively.
  • Mueller evidence used in disinformation campaign, prosecutors say

    Mueller evidence used in disinformation campaign, prosecutors say

    Mueller's team confirmed some of the documents were legitimate and obtained through the trial's discovery process. Acting Attorney General Matthew Whitaker said on Monday that Mueller's probe is "close to being completed ".
    Mavericks to acquire Porzingis, Hardaway Jr. in trade with Knicks

    Mavericks to acquire Porzingis, Hardaway Jr. in trade with Knicks

    He was averaging a career-high 22.7 points per game in the first half of the 2017-18 season with 6.6 rebounds and 2.4 blocks. Where Kristaps Porzingis gets TRADED less than one hour after ESPN's Adrian Wojnarowski reported he wanted out of NY .
    Bolton's notes raise questions on U.S. military plans amid Venezuela tensions

    Bolton's notes raise questions on U.S. military plans amid Venezuela tensions

    Written on a yellow legal pad, Bolton had two lines written at the top of the page: "Afghanistan à welcome the talks", read one. Maduro, in turn, has broken diplomatic relations with the US and ordered American diplomats out of the country.
  • Howard Schultz Takes Jab At Top Liberal Democrats Over Proposed Tax Increases

    Howard Schultz Takes Jab At Top Liberal Democrats Over Proposed Tax Increases

    That wealth has become a point of contention with Schultz's Democratic rivals, whose policies he has sharply criticized this week. Trump responded Monday morning, tweeting , " Howard Schultz doesn't have the "guts" to run for President! ".
    Jets' Jamal Adams wins Defensive MVP Award in Pro Bowl

    Jets' Jamal Adams wins Defensive MVP Award in Pro Bowl

    There has been speculation that the game might be played at the site of the Super Bowl and/or moved to Los Angeles in the future. Sure, the rainy conditions in Orlando were dreary, but the NFL Pro Bowl still averaged 8 million viewers on Sunday afternoon.
    U.S.  government shutdown drained $11 billion from GDP, congress report shows

    U.S. government shutdown drained $11 billion from GDP, congress report shows

    Federal workers poured off of commuter buses and subway escalators on a block of downtown Washington on Monday. Some 800,000 federal employees were furloughed or required to work without pay during the shutdown.


Popular

Canada halving staff at embassy in Cuba after mystery illness
The November incident was the first new Canadian case reported in months, leading to the decision to reduce the remaining staff. Canadian and U.S. diplomats in Havana first began complaining of dizziness, headaches and nausea in the spring of 2017 .

Change of Venezuelan government favours creditors China, Russia - Guaido
A United States official said on Thursday that Washington would offer humanitarian aid to Guaido whenever he sought it. Venezuela's President Nicolas Maduro attends a military exercise in in Caracas, Feb. 1, 2019.

Podcast | Where Are the Jobs? Key Takeaways from the NSSO Report
After the chaotic launch of Goods and Services Tax (GST) in July 2017, hundreds of thousands have lost jobs in small businesses. The news comes only months before Prime Minister Narendra Modi faces a tough race in India's general elections .

Apple kills Google's internal iOS apps for violating App Store rules
But like Facebook's app, Google's Screenwise Meter could be downloaded outside of the App Store, via a Google download link . Apple's decision demonstrates both its power over the industry and a longstanding desire to be seen as a champion of privacy.

US, China face deep trade, IP differences in high-level talks
President Donald Trump has said he favors a healthy Chinese economy, but not at the expense of American business and know-how. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Charges add to US-China tensions
Allegedly, in 2013 Huawei set up a bonus scheme to incentivise its employees to steal trade secrets from its competitors. Meng is alleged to have been personally involved in concealing the true nature of the Huawei-Skycom relationship.

Sen. Kamala Harris town hall with CNN’s Jake Tapper
List of 2020 presidential hopefuls grows as more Democratic candidates join crowded field; reaction and analysis on 'The Five'. Forty percent of Democrats said it would be a good thing, while only 34 percent said it would be a bad thing.

US Agrees to Outlines of Peace Deal with Taliban
The Taliban and United States officials have agreed to continue negotiations, though no date has been publicly announced. Lambah, former Special Envoy of the Prime Minister of India.

Tiger Woods Happy Competing Again, Says 'I Missed It'
He finished with seven birdies and one bogey which came on his back nine. Scott pulled within two by hitting his approach to a foot on the 17th.

Virat Kohli praises Hardik Pandya for putting controversy behind, focusing on game
India defeated New Zealand by seven wickets in the third ODI at the Bay Oval , Mount Maunganui to seal the five-match series 3-0. The second match saw nearly every top order batsman get a start but none of them could go on to convert that into a big score.