• 2 hours Three Stocks To Watch Ahead Of Earnings Season
  • 6 hours Markets Flat As Bulls And Bears Battle It Out
  • 8 hours The Mining Industry Still Has a Human Rights Problem
  • 1 day 5 Billionaires Booted From Their Own Companies
  • 1 day Can Toyota's Hydrogen Car Take On Tesla?
  • 2 days Why Universal Basic Income Won't Work
  • 3 days Is This The Real Golden State?
  • 3 days Blockchain Firm Pushes For Ethical Mining
  • 4 days America’s Working Class Are Footing All The Bills
  • 4 days Market Volatility Sends Investors Scrambling Into This Asset Class
  • 4 days How Much Energy Would It Take To Power The Death Star?
  • 5 days A Tweet About Hong Kong Could Cost The NBA $4 Billion
  • 5 days World's Largest Miner Doubles Down On Renewables
  • 5 days Nasdaq Cracks Down On Small Chinese IPOs
  • 6 days Is There Any Reason To Be Bullish About Netflix?
  • 6 days Precious Metals See Record Inflows As Investors Hedge Against Teetering Economy
  • 6 days NYU Professor: Tesla Could Lose 80% Of Its Value
  • 7 days Uber To Offer On Demand Employment
  • 7 days SoftBank Reeling After Questionable WeWork Investment
  • 7 days Opportunity Arises In The Democratic Republic Of Congo
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Markets
  3. Other

EU Weighs New Payment System With Iran To Skirt U.S. Sanctions

Euro

The European Union is looking favorably at a proposal by Germany’s Foreign Minister Heiko Maas to set a SWIFT-like payment system between the union and Iran as a way of avoiding U.S. sanctions, Sputnik reports, quoting a source from the EU.

“Various ideas [on the matter] are being voiced, and at present, one can say that it is an important contribution in terms of efforts to secure the Iran nuclear deal,” the source, who was not named, said. Whether or not Maas’ proposal will be discussed officially by EU officials remains to be seen.

Europe is among Iran’s top oil destinations and has demonstrated its eagerness to keep the nuclear deal and continue buying Iranian crude. Earlier this year, after President Trump pulled the United States out of the deal, the EU enacted a blocking mechanism from the 1990s that will effectively oblige European companies doing business in Iran to not comply with the U.S. sanctions. The EU also granted the European Investment Bank an external lending mandate to protect these European companies.

Despite these EU assurances that European companies could continue doing business as usual with Iran, European refiners began reducing their intake of Iranian oil pretty much as soon as Trump announced the U.S. pullout of the nuclear deal in May. At the time, Reuters quoted an Italian refiner as saying, “It is not clear yet what the U.S. administration can do but in practice we can get into trouble.”

Reuters also quoted sources from the industry as saying that all the large European refiners from Eni and Total to Repsol and Cepsa, were preparing to stop buying oil from Iran. Total later pulled out of the South Pars gas project in Iran. This means that the French company is at risk for punitive action from the EU, which makes the whole situation begin to look like the theater of the absurd.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment