France says it expects Iran-EU trade mechanism to be established in 'coming days'

France's foreign minister said on Wednesday that he expected a European-backed system to facilitate non-dollar trade with Iran and circumvent U.S. sanctions would be established in the coming days, Channel NewsAsia reported.

Diplomats have told Reuters the European Union is set to officially launch the mechanism this month, but the so-called special purpose vehicle (SPV) will not operate for several months because technical details still need to be worked out.

The vehicle, designed to bypass fresh U.S. curbs imposed after Washington quit a landmark nuclear deal, will be registered in France, run by a German and likely to include France, Germany and Britain as shareholders.

The SPV "should be implemented in the coming days", Jean-Yves Le Drian told the French parliament's foreign affairs committee.

"It will work as a sort of clearing house that will allow in euros for Iran to benefit from some of its oil resources and at the same time buy essential products from the main three main (European) partners," Le Drian said.