“The future transaction system will be open to an even broader set of parties after its initial launch,” Chizhov said.
He reiterated that there is an understanding that they will create it on their own, put it into practice and then open it for third states, and said, “The project to create a special mechanism for financial transactions with Iran bypassing the US sanctions is now in full swing.”
Chizhov reiterated that the EU’s is prioritizes for maintaining financial trade with Iran.
The basis for the anticipated alternative financial system was formally set in a joint statement issued in September by the remaining signatories to the Iran nuclear deal, promising to establish a ‘special purpose vehicle’ to facilitate payments related to Iran’s exports as part of efforts to salvage the JCPOA after the US withdrawal and subsequent roll-back of sanctions.
European and Iranian politicians have called for European states to ensure continued dedication to the JCPOA by guaranteeing continued trade, withstanding US pressure.
On October 3, the International Court of Justice (ICJ), the UN’s top court issued a ruling reprimanding the US over its re-imposition of sanctions on Iran and ordering Washington to lift restrictive measures linked to humanitarian trade, food, medicine and civil aviation.
European Union Foreign Policy Chief Federica Mogherini said last month that a so-called Special Purpose Vehicle (SPV) would facilitate trade with Iran and it would go into force before November.
The SPV aims to keep trade flowing even if possible US sanctions hit Tehran.
European diplomats have previously described the SPV proposal as a means to create a barter system, similar to one used by the Soviet Union during the Cold War, to exchange Iranian oil for European goods without money changing hands.