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1/31, 6:03 PM (Source: TeleTrader)
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EU's Iran payments link won't impact US sanctions - State Dept

The European Union's special-purpose vehicle (SPV), a channel for transactions with Iran is not expected to affect the United States campaign of maximum pressure on the Islamic Republic, spokesperson for the US State Department stated on Thursday.

"We do not expect the SPV will in any way impact our maximum economic pressure campaign", the spokesperson said. "We are closely following reports about the SPV to gain additional details about the mechanism," the spokesperson stated, but reaffirmed that entities that resume their business dealings with Iran in spite of US sanctions "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."

Earlier today, it was reported that Germany, France and the United Kingdom are preparing a payments link with Iran called the Instrument in Support of Trade Exchanges (Instex), which is designed to circumvent sanctions that the US imposed on the Middle Eastern nation by direct settlement between companies and not through banks.

Breaking the News / FH