Europe is steps away from SPV: German envoy

Should it become operational, the Special Purpose Vehicle (SPV) created by the European Union, will not use US dollars in its transactions with Iran and will allow European firms to trade with Iran in the face of unilateral US sanctions.

26 January 2019
ID : 11797
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Should it become operational, the Special Purpose Vehicle (SPV) created by the European Union, will not use US dollars in its transactions with Iran and will allow European firms to trade with Iran in the face of unilateral US sanctions.

German Ambassador to Iran, Michael Klor-Berchtold in Tehran

Europe is steps away from establishing a non-dollar financial channel with Iran, also known as the Special Purpose Vehicle (SPV), German ambassador to Iran says.

"[Europe] is taking final steps to make the SPV operational and we will see its implementation in the coming days," German Ambassador to Iran Michael Klor-Berchtold said on Saturday.

The German diplomat criticized the US unilateral withdrawal from the 2015 international treaty on Iran's nuclear programme, also known as the Joint Comprehensive Plan of Action (JCPOA), saying "the German government has repeatedly regretted the US move."

"Germany has been trying to harmonise the European Union's support for the JCPOA," added Klor-Berchtold in a meeting with Ali Motahhari, deputy Iran parliament speaker in Tehran.

He also stressed that Germany believes Iran is "one of the most important countries in the region and resolving regional issues requires cooperation with this country".

For his part, deputy Iranian parliament speaker lashed out at Europe's delay in putting in place the SPV, saying "Europe didn't take appropriate and practical measures in implementing the JCPOA following the US withdrawal from the pact." 

Motahhari said Iran expects the European SPV to be established in a bid to continue trade cooperation between European, especially German firms, and Iran. He called on the three European countries, Britain, Germany and France, to support the companies that want to keep up commercial ties with Iran. 

Earlier, Bloomberg reported three diplomats have told its correspondent that the SPV will become operation as soon as this Monday

Also on Friday, French Foreign Minister, Jean-Yves Le Drian, had said the European-backed trade mechanism will be ready in coming days

Brussels has been rushing to put together an unprecedented non-dollar financial channel, to be hosted by a bank, that will allow Iran to be able to buy its vital commodities and finally not leave the nuclear deal. Since the last round of US sanctions took efect last November, European diplomats have been annoucing different dates and timetables for the special purpose vehicle. EU foreign policy chief, Federica Mogherini, said last December the channel would be operational at the end of 2018.  

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