The delay in the activation of Europe’s proposed financial mechanism to facilitate trade with Iran in the face of the US sanctions is due to technical and legal complexities that need time to be addressed, a top Foreign Ministry official said.
The mechanism named Special Purpose Vehicle is designed to circumvent the US restrictions, under which Washington can cut off any bank that enables transactions with Iran.
It was supposed to be legally in place by Nov. 4 when the new round of sanctions took effect, but has faced a delay, IRNA reported.
“Unfortunately, due to the dominance of the US dollar and the American financial system on European organizations, creating a mechanism that acts independently and would not be subject to US sanctions is not an easy job,” Deputy Foreign Minister Abbas Araqchi said.
Araqchi, however, maintained that the European countries' political will to assist Iran against the US ban is “clear” and “evident”.
“It is unprecedented for Europe, as Washington’s closest ally, to … help a country like Iran to withstand US sanctions,” he said.
