Trade Facility for Iran Boosts Global Trust in EU

By creating a special mechanism to enable trade with Iran in the face of the United States’ sanctions against Tehran, Europe will earn itself the trust of other countries to enter into contracts with it, a parliamentarian said on Tuesday. 

Asadollah Abbasi, a member of Majlis Presiding Board, also told ICANA that the European Union will risk its dignity and its powerful voice on the global stage should it fail to establish a system to ensure the implementation of the nuclear deal.

"Europe will prove with this move that it will not take America's behavior and policies as a model," he said.

Abbasi said the new banking mechanism will definitely help counter US sanctions. 

"As a result of this system, small- and medium-sized enterprises will most likely return to Iran and those already active in the country will continue their cooperation," he said. 

The US abandoned the 2015 nuclear agreement between Iran and world powers in May and reimposed tough sanctions on Tehran, but other parties have affirmed their commitment. The EU, in particular, has taken the lead to support the accord and assist Iran in countering the US embargo.

It has so far set up and proposed a number of mechanisms through which Iran would be able to maintain its trade and banking relations with the world despite sanctions. 

Among the measures are updates to the Blocking Statute that bans any EU company from complying with US sanctions against firms investing in or doing business with Iran. The European Investment Bank's external lending mandate has also added Iran to the list of countries outside the EU, which are eligible for EIB lending. 

However, Iran is particularly looking to another key proposed measure referred to as a Special Purpose Vehicle aimed at facilitating trade with Iran, which is expected to become operational by November, before the new set of sanctions targeting Iran's oil industry takes effect. 

The proposal has been described as a means to create a barter system to exchange Iranian oil for European goods without money changing hands, although its details have not been disclosed for concerns over national interests.