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EU Rebukes Trump, Will Create "Special Vehicle" to Bypass US Sanctions on Iran

• The Maven - Mish Shedlock

The Wall Street Journal reports Europe Plans 'Special Vehicle' to Maintain Companies' Ties to Iran, Avoid U.S. Sanctions.

The European Union said late Monday that it would establish a special payment channel to allow European and other companies to legally continue financial transactions with Iran while avoiding exposure to U.S. sanctions.

"The move is a direct rebuke of President Trump's policy on Iran and his decision to withdraw from the nuclear deal in May, and sets the stage for a confrontation between the U.S. and Europe in the days ahead at the U.N. General Assembly, where Iran is among the prominent themes.

EU foreign-policy chief Federica Mogherini and Iran's Foreign Minister Javad Zarif made the announcement of a "special purpose vehicle" jointly, in English and Farsi, after a meeting at the U.N. of the parties still committed to the deal—Iran, EU, U.K., France, Germany, Russia and China.

The mechanism—the details of which would be set up in future meetings with technical experts—would facilitate payments related to Iran's oil trade, exports and imports, and "reassure economic operators pursuing legitimate business with Iran," the statement said.

Ms. Mogherini said Iran has remained fully committed to its obligations under the nuclear deal, as certified by a dozen reports from U.N.'s nuclear watchdog, the International Atomic Energy Agency.

 

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