EU's financial mechanism for Iran to come into effect soon

TEHRAN, Sep. 28 (MNA) – Iranian Foreign Minister Mohammad Javad Zarif hailed Europeans’ efforts to provide Iran with a financial mechanism to save the JCPOA, saying the proposed 'Special Purpose Vehicle' will come into effect in the near future.

“Europeans have made great efforts over the past few months, and at least seven central banks have agreed to create a special financial mechanism to have relations with Iran and in the near future they will turn it into an institution” Zarif told IRNA news agency in New York on Thursday afternoon.

He said that as far as Iran is concerned, the financial mechanism aimed at easing trade with the Islamic Republic will come into effect in the near future, adding "but what they want is an institution that can work beyond Iran, which may take longer."

He explained “as EU foreign policy chief Federica Mogherini said in a statement, the mechanism is not just for Europe in particular but it is for other countries and companies that have financial relations with Iran in order for them to be able to put money in that account and withdraw exports costs from it.”

“This is a useful way to protect financial institutions against US sanctions, which work with US dollars more than any other currencies and can be sanctioned by the US because of this even if they carry out transactions with Iran in euros.”

“That means working with euros only,” the Iranian top diplomat noted, adding “I think it's a good way to get rid of one of US' imposed mechanisms on the banking sector.”

KI/IRN83046792

News Code 138133

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