Virtschaftezvoukhe newspaper, reported that according to the diplomatic meetings in the European Union, France and Germany have agreed to run special purpose vehicle (SPV) for salvaging Iran nuclear deal which is known as the JCPOA.
SPV will serve as a payments channel, allowing trade to take place without the involvement of European Commercial Banks in order to make and received payments with Iran.
Meanwhile, France is going to host this trade house and also its chief will be German. The newspaper said that 9 European countries such as Italy, Spain and Austria are willing to join this financial channel.
According to the German newspaper, this institute is limited to humanitarian goods which are not under U.S. sanctions like food and pharmaceutical products. Some European companies that export food stuff to Iran, have faced many problems because there is no specific way for money transfer and transaction. Hence the SPV will pave the way for having transaction with Iran.
It is worth mentioning that this payment channel at first starts its activity as a small financial institute and then during the time would turn into an institute for trade ties with Iran, so in terms of politics, it is very significant. The newspaper wrote, European countries have insisted on reducing their economic dependency on U.S.A.
Earlier, Austria and Luxembourg were both approached to host the mechanism, but declined to as a result of US pressure. Both countries had previously served as banking back channels for trade with Iran.
