Germany, France, Britain to Launch Trade Mechanism with Iran

By Staff, Reuters

Germany, France and Britain officially set up a European mechanism to facilitate non-dollar trade with Iran and avoid US sanctions.

The EU has been preparing the system, in effect a clearing house that avoids monetary transfers in dollars between the EU and Iran for months although it is unlikely to become operational for several months due to technical details.

In further details, the European Special Purpose Vehicle [SPV] would be named INSTEX-Instrument In Support Of Trade Exchanges, German broadcaster NDR reported.

The idea is for the SPV to help preserve the economic benefits for Iran derived from the curbs it placed on its nuclear program under a 2015 deal with world powers.

Europe has been keen to show good faith towards Iran since US President Donald Trump withdrew from the deal last year.