The European Union said that its members would set up a payment system to allow oil companies and businesses to continue trading with Iran in a bid to evade sanctions after the US withdrew from a nuclear agreement.
Iran and the European Union announced their defiance towards U.S. President Donald Trump’s administration after high-level talks at the United Nations among the remaining members of the accord.
The countries said in a statement that they were determined "to protect the freedom of their economic operators to pursue legitimate business with Iran."
With the United States and the dollar dominating so much of global trade, the statement said the new mechanism would "facilitate payments related to Iran’s exports (including oil) and imports, which will assist and reassure economic operators pursuing legitimate business with Iran."
EU foreign policy chief Federica Mogherini, speaking at the United Nations alongside Iranian Foreign Minister Mohammad Javad Zarif, said the countries were still working out the technical details.
"In practical terms, this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world," Mogherini said.
She added that the remaining members of the so-called Joint Comprehensive Plan of Action – Britain, China, France, Germany and Russia – would also maintain their commitments to support Iran on civilian nuclear energy, the Express Tribune reported.
"The participants recalled that these initiatives are aimed at preserving the JCPOA, which is in the international interest," EU foreign policy chief said.
In line with findings of UN inspectors, Mogherini reiterated that Iran has been in compliance with the nuclear agreement – under which Tehran drastically scaled back its nuclear program in exchange for relief from sanctions.
