Date :Monday, January 7th, 2019 | Time : 07:05 |ID: 82800 | Print

Bahram Qasemi warned that Iran’s patience on SPV was running thin

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SHAFAQNA | By Leila Yazdani : The domination of dollar and the interconnectedness of the European and American economies are the reasons behind delay in the implementation of Special Purpose Vehicle. Mogherini said on Wednesday that efforts to implement the special purpose vehicle for trade with Iran will continue into 2019 but, Iranian Foreign Ministry spokesman, Bahram Qasemi warned that Iran‘s patience was running thin and the bloc should account for the “consequences” of the delay. Iran is already angry with the EU over its failure to stop European companies from leaving the Islamic Republic.

It’s been nearly five months since American President Donald Trump withdrew from the Iran nuclear deal. Washington has deployed extraterritorial or “secondary” sanctions, which would hit any company that deals in Iran.

This has forced major international corporations to choose between accessing the Iranian or the American market. And unsurprisingly, no major firm has yet opted for the former. Total, Maersk and Peugeot are just a few of the international giants that have left the country for fear of Trump’s wrath.

Most international transactions are made in dollars, given its powerful status as the world’s reserve currency. The dollar’s stability once made it an attractive dominator of the global financial system – a company receiving a payment wants to be sure that money will not lose its value overnight, albawaba told.

The Iranian Foreign Ministry has criticized the European Union for delaying the establishment of a so-called Special Purpose Vehicle (SPV) which aims to facilitate non-dollar trade with Iran and bypass unilateral US sanctions.

Foreign Ministry spokesman Bahram Qasemi said the European Union was responsible for not implementing the SVP, and called on the block to think about possible consequences, according to IRNA news agency.

“The Europeans as the main beneficiary should think about the consequences of the decision, as Iran has so far fulfilled all its commitments under the JCPOA [Joint Comprehensive Plan of Action],” Qasemi said.

European countries should pay for their independence from the US

Qassemi cited “the domination of the dollar and the interconnectedness of the European and American economies” as the reasons behind the delay. “The European Union and even the three European parties to the deal with Iran are captive and hostage to the American economy, so they need to decide for their independence,” he said.

“European countries should pay for their independence from the United States, because doing so cannot be without costs, especially for the implementation of important historical tasks such as the SPV, which could be a major milestone for European solidarity on the global stage; so the European countries need to make a decision at this point and juncture,” Qassemi said.

The EU first pledged to make it operational before the US sanctions went into effect in August 2018. Last month, EU foreign policy chief Federica Mogherini said in early December that she expected the instrument to be established before the end of 2018, nation mentioned.

The SPV or the special purpose vehicle is a virtual clearing house which the Europeans have been working on for months to process Iran-related transactions independent of the US but the mechanism has yet to see the light of the day.

Following a September ministerial meeting on the sidelines of the UN General Assembly, the United Kingdom, Germany, France, China, Russia and Iran announced that the EU would establish a financial mechanism to enable trade with Iran after a decision of the United States to reimpose sanctions on Tehran.

The Europeans have failed twice to fulfill their promises

So far, the Europeans have failed twice to fulfill their promises to get the system up and running in order to persuade Iran to remain in a landmark 2015 nuclear deal known as the JCPOA after the US abandoned it, islamtimes told.

The Europeans started with goodwill and showed a “positive political will” to set up a financial mechanism, over time and during negotiations over the past months, they are reinforcing the impression that the European states face a series of serious disabilities in implementing the SPV.


Read more from Shafaqna:


UN’ Guterres calls for preserving JCPOA as a multi-national diplomatic achievement

Mogherini: EU’s SPV could be in place by year’s end

EU must act soon if it wants to keep the nuclear agreement alive

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