UK, France and Germany create payments system to trade with Iran


0

The UK, Germany and France have created a new payments system to allow European businesses to trade with Iran without falling foul of US sanctions.

All three opposed last year’s decision by President Donald Trump to abandon a 2015 deal under which international sanctions on Iran were lifted.

Some of the US sanctions make it difficult for European banks to make direct payments to Iran.

The US said sanctionable activity with Iran risked “severe consequences”.

By creating a new payment channel, based in Paris, and managed by a German banker, the UK, France and Germany hope to enable companies to continue to trade with Iran.

Many other existing payment channels have links to the US, which means making payments to Iran is difficult.

For now the new payment system is expected to only apply to food and medical products which are not subject to sanctions. Oil, Iran’s main source of foreign exchange, will not be covered.

‘Toughest regime’

In a statement, the US Embassy in Berlin said: “As the President has made clear, entities that continue to engage in sanctionable activity involving Iran risk severe consequences that could include losing access to the US financial system and the ability to do business with the United States or US companies.”

However, it added it did not expect the new payments system, called the Instrument In Support Of Trade Exchanges (INSTEX), would “in any way impact our maximum economic pressure campaign” against Iran.

In 2015, Iran accepted curbs on its nuclear programme in return for the lifting of sanctions. However, last November the US reinstated all its sanctions on Iran. The White House said it was “the toughest sanctions regime ever imposed” on Tehran, targeting Iran and states that trade with it.

The EU tried to save the nuclear deal with Iran. However, earlier this month it announced fresh sanctions on a unit of the Iranian intelligence agency and two individuals over alleged assassination plots.

The EU accused them of attempting, or carrying out, attacks within several European countries.

Source : BBC


Like it? Share with your friends!

0

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
BBC

Comments

comments

Powered by Facebook Comments

Choose A Format
Story
Formatted Text with Embeds and Visuals
Video
Youtube, Vimeo or Vine Embeds
List
The Classic Internet Listicles
Open List
Submit your own item and vote up for the best submission
Countdown
The Classic Internet Countdowns
Poll
Voting to make decisions or determine opinions
Ranked List
Upvote or downvote to decide the best list item
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Meme
Upload your own images to make custom memes
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format