The EU hopes the new framework will keep firms doing business with Iran. European businesses have already pulled out and the currency has plummeted as the threat of US sanctions looms.
European Union will set up a legal entity to facilitate legitimate financial transactions with Iran to allow continued trade, EU High Representative for Foreign Affairs and Security Federica Mogherini said after the ministerial meeting of JCPOA participant nations Monday.
“The JCPOA participants reconfirmed their commitment to its full and effective implementation in a good faith and in a constructive atmosphere,” Mogherini said on Monday.
Reading the joint statement of Joint Comprehensive Plan of Action (JCPOA) participant nations meeting, EU High Representative for Foreign Affairs and Security Federica Mogherini said the group of five nations confirmed their commitment to the deal, and stressed the importance of developing a payment mechanism to let trade with Iran continue in the face of reimposed US sanctions.
The participants — UK, China, France, Germany, Russia and Iran — also confirmed the importance of protection of companies that conduct bysiness with Tehran.
“Mindful of the urgency and the need for tangible results, the participants welcomed practical proposals to maintain and develop payment channels, notably the initiative to establish a special purpose vehicle to facilitate payments related to Iran’s exports, including oil, and imports” Mogherini told reporters, speaking alongside Iran’s Foreign Minister Mohammad Javad Zarif.
“EU member states will set up a legal entity to facilitate legitimate transactions with Iran, which would allow European companies work with Iran according to European laws. It will also be open to other participants,” she added.
She stressed that the decision to set up the special purpose vehicle is already made.
“The participants recognized that Iran must continue to fully and effectively implement its nuclear commitments as confirmed by 12 consecutive reports by the International Atomic Energy Agency (IAEA),” Mogherini said.
“The participants equally highlighted the extensive work and substantial progress undertaken to date in intensification of technical dialogues, efforts to maintain and improve bilateral economic relations and the mobilization on considerable resources by all including the third countries interested in supporting the JCPOA and pursuing in a timely and effective manner… normalization of trade and economic relations with Iran,” the joint statement reads.