September 24, 2018

European Union advances plan to trade with Iran

On September 24, ministers from Germany, France, the UK, China, and Russia met with diplomats from Iran to develop methods of implementing the Joint Comprehensive Plan of Action (JCPOA) following the US’ unilateral withdrawal from the JCPOA and the EU’s subsequent update to the Blocking Statute and European Investment Bank’s external lending mandate to make Iran eligible.  The parties discussed practical proposals to maintain and develop payment channels, in particular the establishment of a Special Purpose Vehicle, to facilitate payments related to Iran’s exports and imports. The participating governments plan to set up a jointly-owned corporation either in France or Germany that will use credits for transactions between Iran and Europe and avoid using the USD-denominated international financial system.

EU Ministerial Statement | Updated Blocking Statute | Remarks by HR/VP Mogherini