In the Face of the United States: EU, Russia and China Agree To Special Payments System for Iran

EU foreign policy chief Federica Mogherini and Iranian Foreign Minister Javad Zarif

By Robert Wenzel

Defying the United States, the EU's three biggest governments, Britain, France and Germany, have agreed to a deal along with Russia and China to set up a special payments system to facilitate trade with Iran.

In a joint statement this morning, the foreign ministers of China, Russia, Germany, the UK and France agreed to “assist and reassure economic operators pursuing legitimate business with Iran” including its oil exports.

From the Financial Times:

The co-ordinated move is the latest step by the five powers to protect the foundering nuclear deal by circumventing US sanctions. The White House will hit Iran with a second batch of measures — targeting its oil exports and payments from its central bank — next month.

Federica Mogherini, the EU’s top diplomat, said the financial tool — known as a “special purpose vehicle” — would allow for legitimate financial transfers between European and Iranian companies...

The SPV would “allow European companies to trade with Iran in accordance with EU law and could be open to other partners in the word”, Ms Mogherini told the UN general assembly on Tuesday.

 Al Jazeera's Shihab Rattansi, reporting from the UN headquarters in New York, said the new entity will act as a "clearing house, a middleman, so to speak, between Europeans and Iranians as they try to do business."

"If the Italians want to buy some Iranian oil, they will wire the money to this entity which will then handle the financial transactions from there and vice versa," he said.

"There will be no involvement of commercial banks and central banks, both of whom are terrified at the prospect of US retribution if they are seen to be going against US sanctions."

Trade is always a way toward peace.

Robert Wenzel is Editor & Publisher of

EconomicPolicyJournal.com and Target Liberty. 

More about Wenzel here.