EU Not Able to Launch SPV for Trade with Iran: Former diplomat

The former spokesman of Iran’s Ministry of Foreign Affairs has said: “Europe is not able to implement the Special Purpose Vehicle (SPV) for trade with Iran and in case such mechanism is formed it will be a limited, temporary and fragile mechanism which cannot meet Iran’s fundamental demands.”

The EU’s SPV has not become operational although Federica Mogherini, High Representative of the European Union for Foreign Affairs and Security Policy, had previously said that the mechanism would become operational before the end of 2018.

Commenting on EU’s weakness against the US, spokesperson of Iran’s Ministry of Foreign Affairs, Bahram Ghasemi, said on Monday: “If the EU fails to launch the mechanism, it has to face the consequences.”

Commenting on Ghasemi’s remarks, Hamidreza Asefi says: “There is a possibility that the EU will link the of SPV to other issues; however, their own weakness is a more serious possibility for the delay in implementing the mechanism. Although it was crystal clear from the very beginning, the Islamic Republic decided to give the EU a chance, but we are now witnessing that despite Mrs Mogherini’s statements, the new Christian year has begun and nothing positive has happened to this end.”

He added: “On the other hand, the EU is fragile in face of the US and has no resistance against US pressures and sanctions. Therefore, Europeans are not willing to take a risk but are instead want to achieve the highest benefits at the lowest cost.”

Commenting on the effects of possible SPV implementation, Asefi, the International Relations expert, said: “The mechanism will not be implemented, but even if that happens, it will be very limited and temporary because the European banks will not join the SPV and it was designed in a way that cannot meet Iran’s fundamental demands since it is not possible with SPV’s limited capacities. In fact, we have to ponder on the fact that such a mechanism cannot last for long.”

“Therefore, if the mechanism becomes operational, it will have minimum impact on making US sanctions against Iran ineffective due to its limited capacity. That is why we should not be dependent on or happy with this mechanism and must take into consideration other parties,” Asefi noted.

Source: Persia Digest