Europe’s Special-Purpose Vehicle for trade which will allow Iran to trade with Europe while avoiding U.S sanctions has been established.

Germany, France, and Britain, signatories of the Iran nuclear agreement (JCPOA) have finalized and established the Special-Purpose Vehicle (SPV) for trade with Iran.

This channel allows the banks to work with Iran despite the U.S sanctions.

The mechanism is a channel separate from the conventional financial mechanisms which have limited their work with Iran after the U.S sanctions. The first phase of this mechanism includes food items, medicine, and medical equipment, and it will expand in the future.

Paris has been chosen as the location of this financial channel, and a German banking expert oversees its management. Britain will assume the role of the chair of the oversight committee. The three countries will provide the financial resources for the mechanism.

Other European countries can also join this channel. The three countries will probably issue a statement during the meeting of EU foreign ministers. The mechanism took months of planning and finalizing, and it is expected to have a positive impact on Iran’s economy.

Iran had issued several warnings to Europe that if they do not come through for Iran against the U.S sanctions, Tehran will revisit its arrangements with Europe in security and immigration areas.