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EU nations mull clearing house to avoid Iran sanctions: reports

AFP  |  Frankfurt 

Germany, and Britain are mulling setting up a new financial institution to allow EU trade with to continue despite American sanctions renewed by US Donald Trump, German media reported Friday.

The three countries could set up a "Special Purpose Vehicle" (SPV) -- a firm resembling a clearing house that would cut out of the financial loop while still allowing trade, weekly and business daily reported.

For example, could to a Spanish firm, accumulating credit that could be used to pay a German for goods going the other way -- without any money passing through Iranian hands.

Spokespeople for the German economy and ministries told AFP the scheme was one of several options capitals are discussing with the to create "independent payment channels" to

said wants "to make sure the effects of the sanctions are minimised for companies that want to do legitimate business with and in and they can still have access to necessary finance," adding that "currently the work is ongoing".

Trump's decision in May to withdraw from a 2015 deal with Iran, under which the country agreed to freeze its nuclear weapons programme in exchange for slackening of economic sanctions, dismayed diplomats across

Since then EU chiefs have been scrambling to find a way for their firms to continue trading with the Islamic republic.

Banks that usually execute the payments in international deals fear themselves falling foul of American reprisals if they continue to enable business with Iran.

While Berlin, and are driving the scheme, reported it would be open to other EU member states if it is set up. is reportedly also interested in participating.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, September 15 2018. 00:50 IST