Germany, France and Britain has officially set up a European payment channel for transactions to facilitate trade with Iran and circumvent U.S. sanctions, German NDR broadcaster reported on Thursday.
The European channel will be named INSTEX-Instrument In Support Of Trade Exchanges, NDR said.
The statement comes after spokeswoman for EU Foreign Affairs and Security Policy Maja Kocijancic announced that the work aimed at the creation of the special purpose vehicle (SPV) had already entered its final stage. On 28 January, German Foreign Minister Heiko Maas said that the mechanism had not been registered yet.
The second package of US sanctions targeting, in particular, Iran’s oil sector took effect on 5 November.
n May, US President Donald Trump announced that the United States would withdraw from the Iran nuclear deal, and re-impose sanctions against Iran that had been lifted under the agreement. The first round of restrictions came into force in August and the second on 5 November.
Despite Washington’s unilateral move, the other parties to the deal — China, France, Germany, Iran, Russia, the United Kingdom and the European Union — have expressed their commitment to the JCPOA.