Iran and EU inch closer to a framework for circumventing the US sanctions

Tabnak – As the deadline looms for the implementation of a new round of US sanctions against Iran, the remaining parties of the Iran nuclear deal appear to intensify their efforts to find a way for continuing economic ties with Tehran. Meanwhile, the Iranian administration is preparing new measures to stabilize the domestic economic situation.

According to the Iranian Foreign Ministry, Iran has been doing copious work with Europe to devise a mechanism to guarantee continued bilateral trade despite attempts by the United States to obstruct such cooperation.

"After much negotiation over a clear mechanism with Europe, we have neared certain understandings; and for sure, US sabotage in that regard will fail," said Bahram Qassemi, spokesperson for the Foreign Ministry, during a press briefing on Monday.

Qassemi referred to the US unilateral pullout from a multilateral deal with Iran, Europe, Russia, and China on May 8, and said Tehran has since been negotiating with the remaining parties to work out a mechanism to beat the US financial reach in European countries that would hinder their continued cooperation with Iran.

On September 24, Iran and the five remaining parties of the nuclear deal released a joint statement announcing the setting up of a "Special Purpose Vehicle" to facilitate continued trade with Iran, bypass the US's financial system, and avoid any impact of America's secondary sanctions. That statement did not provide details and EU foreign policy chief Federica Mogherini said technical talks would ensue.

Qassemi said details would remain undisclosed to protect national interests and to preempt potential attempts to undermine Iran's work with its partners. But he did say "the mechanism for cooperation" was being finalized. The Iranian spokesperson also said Iran would ultimately decide whether its demands have been met in practice.

"If, ultimately, and for whatever reason, the European Union and [our] other partners fail to provide the necessary guarantees to us, that can influence Iran's decision, and the Islamic Republic will follow the path that is expedient for the country," he said.

Meanwhile and on the domestic scene, head of Iran’s Plan and Budget Organization said the administration is going to implement five new packages of measures to regulate the foreign currency market.

In comments at a working breakfast with business people in Iran’s Chamber of Commerce on Monday, Mohammad Baqer Nobakht said President Hassan Rouhani’s administration will start implementing five new packages soon. He said the packages are meant to regulate the currency market and deal with other economic challenges, including an improvement of the livelihood conditions.

On May 8, US President Donald Trump pulled his country out of the JCPOA, which was achieved in Vienna in 2015 after years of negotiations among Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany).

The US also re-imposed sanctions against Iran, announced plans to get as many countries as possible down to zero Iranian oil imports, and launched a campaign of “maximum economic and diplomatic pressure” on Iran. Meanwhile, Iran’s market has experienced a hike in the value of foreign currencies and gold coin prices in recent months.