Germany, France and the UK have created a special financial channel to enable trade with Iran to continue despite the reimposition of US sanctions on Tehran. The new mechanism, unveiled by the so-called E3 last week, is an attempt to save a landmark international nuclear deal after Donald Trump pulled the US out of it last May.
The Financial Times looks at the measures announced by the Europeans, what’s at stake — and whether they are likely to succeed.
What exactly have the three European powers done?
The group has created a “special purpose vehicle” or SPV to insulate international trade with Iran from the impact of US sanctions. The targets of Washington’s extensive measures range from the oil industry to the central bank in Tehran.
The SPV is a France-registered limited liability company called Instex, headed by Per Fischer, a German banker. Germany, France and the UK, which were signatories to the 2015 nuclear deal, will all be shareholders.
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