SPV for Iran trade to be announced soon: Iran Deputy FM

IRNA – Iran’s Deputy Foreign Minister for Political Affairs Abbas Araghchi says Iran and the European Union are in close touch on SPV (Special Purpose Vehicle for trade) mechanism and hope that it would be announced soon.

He expressed these views in an exclusive interview with the Islamic Republic News Agency (IRNA) during his Pakistan’s visit.

The official added despite the US unilateral withdrawal from the Joint Compressive Plan of Action (JCPOA), the European Union has introduced special financial mechanism for trade with Iran countering the negative impacts of the US illegal sanctions.

Araghchi went on to say that Europe through Special-Purpose Vehicle wants to facilitate Iran-Europe payments after US illegal sanctions on Iran, and some unanticipated problems and their solution.

He added that there are no special conditions on Iran to participate in the SPV; however, under the mechanism there are some rules which the Iranian banks need to follow to implement the financial system.

Deputy Foreign Minister said the Iranian banks right now are under the US sanctions and if they come under Financial Action Task Force (FATF) sanctions, then SPV cannot be implemented.

Senior Iranian diplomat was of the view that if Iran banks come under FATF sanctions again, then they would not be able to make transactions not only with Europe but also China and Russia as well.

He expressed the hope that Iran Parliament, Guardian Council and Expediency Council would be able to reach at consensus regarding FATF which is in the interest of Iran, otherwise it would be very difficult for the Iranian banks to do transactions at the international level.

Araghchi added that Iran is in constant touch with Europe on SPV however details of the agreement cannot be made public till it is finalized.

Referring to his Pakistan visit, the minister said he had fruitful meetings with Pakistan’s Foreign Minister Shah Mahmood Qureshi and Foreign Secretary Tehmina Janjua.

He said during the meetings both sides had detailed discussions on bilateral ties, regional and global issues, US withdrawal from Iran nuclear deal, situation in Afghanistan and humanitarian crisis in Yemen.

Senior diplomat said Iran and Pakistan share common view on issue of Afghanistan and peace and stability in the country is in the interest of both Iran and Pakistan.

He said that Iran and Pakistan also welcome Yemen peace process initiated in Sweden and discussed ways to end crisis in Yemen. He said both Iran and Pakistan support peace process in Yemen under the United Nations supervision.