While under the strict sanctions of the United States, Iran needs to tactfully maintain its cooperation with the European Union so as to win other advantages, in addition to their special financial mechanism for trade, a political expert said.
“Iran needs to have perseverance … The more it works with Europe, the more benefits it can reap besides SPV [special purpose vehicle],” Ali Khorram also said in an interview with ISNA published on Monday.
Unilateral US sanctions were reimposed on Tehran after US President Donald Trump pulled his country out of the 2015 nuclear agreement, formally known as the Joint Comprehensive Plan of Action, to which the EU is also a party.
Europe, on the other hand, has been endeavoring to salvage the deal by devising measures to safeguard Iran’s economic benefits under JCPOA.
Their most essential measure is the special purpose vehicle, a transaction channel designed to keep trade with Iran flowing through a non-dollar system that bypasses US sanctions.
As envisaged by the EU, the SPV would accept payments from companies that want to trade with Iran. With no direct transfer of funds between Iran and European actors, it would theoretically insulate firms from US penalties.
The mechanism was set to be legally prepared by November 2018, but was unduly delayed, triggering strong reaction by Iranian officials who warned the EU of the loss of mutual trust and Iran’s possible reconsideration of its commitments.
EU foreign policy chief’s spokeswoman, Maja Kocijancic, said on Thursday that SPV preparations were “at an advanced stage”, hoping that they could announce the launch “very soon”.
No Miracle
Bloomberg cited several European officials as saying that the official unveiling could come as early as Monday and by the end of the month at most.
An EU statement welcoming SPV was set to be discussed by European envoys on Monday and released soon if all 28 members agreed.
Nevertheless, even after it becomes operational, according to Khorram, SPV should not be expected to “work like a clock” for Iran, because there are problems hampering its effectiveness.
“For instance, [Iran] must sell oil or export goods so as to deposit its income into this account,” he said.
The expert conceded that the US would not be happy with such a countermeasure and definitely look for ways to disrupt the arrangement.
“It could place sanctions on Iran’s shipping industry so that no oil could be sold to deposit the income into the account,” he said.
Khorram stressed, however, that such issues would not indicate the uselessness of SPV, warning against any hasty and hostile reaction to Europe.
“This mechanism is like a newborn baby and needs care until it grows up,” he said.
