The protracted and sluggish process of establishing a financial mechanism by the European Union to keep trade with Iran afloat has undermined Iranians’ trust in the bloc, a senior parliamentarian said.
“Unfortunately, the Europeans have lingered too long over this matter while they were expected to operationalize it much sooner,” Kazem Jalali also told Mehr News Agency on Saturday.
The European Union has proposed a financial mechanism known as the Special Purpose Vehicle to uphold trade with Iran on a non-dollar basis in the face of the United States’ reimposed sanctions.
SPV is part of EU’s efforts to keep alive the nuclear agreement that was signed between Iran and world powers in 2015 after the US unilaterally withdrew from it in May.
Under the deal, Iran has agreed to curb its nuclear activities in return for sanctions relief. To save the accord now, other parties need to take steps to shield Iran from the hostile US measures.
The EU’s proposed mechanism was set to be legally put in place by November, before the enforcement of the second round of US sanctions, and become operational in 2019, but it has been delayed due to a number of issues, including where to establish its headquarters.
“Europe’s repeated promises to make up for the damage caused by the US exit from JCPOA [Joint Comprehensive Plan of Action or the nuclear deal] had boosted the Iranian people’s confidence, but the long-drawn process of implementing SPV has definitely harmed this trust,” Jalali said.
No Concrete Step
The lawmaker regretted that no tangible measure on the part of the Europeans in this regard has yet emerged.
EU foreign policy chief, Federica Mogherini, said recently that the system is expected to be launched in the coming weeks but did not specify a date.
“I would expect this instrument to be established in the coming weeks as a way to protect and promote legitimate business with Iran before the end of the year,” she said.
Mogherini refused to provide any further detail, saying that it will be for the E3 (France, Germany and United Kingdom) to announce it at the proper time.
The delay has been justified by some on the grounds that the mechanism is complicated and requires time to be put in place.
Europe’s Climate and Energy Commissioner Miguel Arias Canete has described the task as “a hugely complex and unique undertaking”.
Jalali maintained that Europe was not at short notice to activate the financial mechanism.
“Seven months after the US withdrawal from JCPOA, it has not fulfilled its commitment yet,” he said.
While remaining hopeful about the EU pledges, Iranian officials have repeatedly warned that the EU’s time for the activation of the mechanism will not be unlimited.
