Efforts by countries to bypass sanctions against Iran counterproductive: US

The US has said efforts by countries to set up special payment system to bypass its sanctions against Iran is counterproductive, comments which came after the European Union, in a major snub to the Trump administration, decided to set up a new mechanism to enable legal trade with the Islamic nation without encountering American sanctions.

Earlier this year, the Trump administration had withdrawn from the 2015 Iranian nuclear deal and reimposed a series of tough sanctions on Iran.

While the first phase of sanctions is already in place, the sanctions would come into full force on November 4 and the US expects all countries, including India, to bring down their import of Iranian oil to zero by then.

The US government has made it clear that any country that continues to do business with Iran will be blocked from accessing the American banking and financial system.

However, the sanctions are not endorsed by the UN and it has been a traditional policy of India to enforce only UNSC-authorised sanctions.

Though India, one of the biggest importers of Iranian oil, has already reduced its import, it has indicated that it is unlikely to go down to zero given its massive energy needs. India and the US are currently in talks on this issue.

Meanwhile, on Monday, the EU had announced that it will create new payment channels to preserve oil and other business deals with Iran in a bid to evade US punitive measures.

Expressing disappointment over reports of the EU setting up a special payment system to bypass Iranian sanctions, Secretary of State Mike Pompeo in New York on Tuesday said, "I was disturbed and, indeed, deeply disappointed...This is one of the most counterproductive measures imaginable for regional and global peace and security."