EU set to announce Iran special purpose vehicle - source
The announcement of the special purpose vehicle (SPV) to help trade with Iran despite U.S. sanctions would come as soon as Monday, two diplomats familiar with the matter said.
The mechanism is key to the EU’s effort to keep Iran from quitting the 2015 accord to constrain its nuclear activities in exchange for sanctions relief.
The statement is going to be discussed by EU government envoys in Brussels on Monday morning and may be released soon after, if all 28 member states approve, Bloomberg reported.
A draft EU statement welcomes the initiative by U.K, France and Germany as providing "a positive impact on trade and economic relations with Iran, but most importantly on the lives of Iranian people."
The vehicle would theoretically receive payments from companies that want to continue doing business with Iran, either by receiving waivers for oil imports or permissible trade in goods like food and medicine. With no direct transfer of funds between Iran and European actors, it would, theoretically at least, insulate firms from U.S. penalties.