Last updated on January 30th, 2019
Three European powers have decided to sideline the plans of the US’ President, Donald Trump, to isolate Iran, and are reportedly working on a plan to assist companies to trade with the nation.
The structure, which could be presented as early as Monday, is vital to the European Union’s effort looking to save the 2015 nuclear deal with Iran. The US, imposed sanctions last year after Trump decried that the deal only benefits Iran.
The economic impact of such a scenario cannot be estimated as of now, but coming together of the three major powers, i.e., the UK, France and, Germany is a sign of Europe’s vexation with Trump.
A draft of the European Union (EU), as obtained the by the Bloomberg, also accepts the three-nation initiative. It further believes that it will have “a positive impact on trade and economic relations with Iran, but most importantly on the lives of Iranian people.”
EU government envoys will discuss the statement in Brussels on Monday and are expected to release it soon, if all 28- member countries agree, according to the two diplomats. The step will provide assurance to the European companies who look forward to doing business with Iran. Peculiarly, with the aim of providing protection against dollar-based transactions.
The President’s administration has pronounced the move as an attempt to evade its “maximum pressure” campaign against Iran, besides questioning if it will actually work. Sigal Mandelker, the Treasury’s top sanctions official, said in December that she isn’t worried “at all” and the process may neglect the sanctions.
As presented by the EU, the agreement would allow companies to accept payments from other companies wanting to trade with Iran. This would be possible by receiving waivers for oil imports or permissible trade in goods like food and medicine. With no direct transfer of funds between Iran and European entities, it would protect the European companies from possible US penalties.
The move is aimed at protecting Iran, which the big European countries have failed to do since, the US sanctions returned in August last year.