• 13 hours Retail Sales Rebound, But Is It Enough To Post Positive Earnings?
  • 16 hours Stocks Continue To Slide As Economic Fears Fester
  • 19 hours Where Does The True Value Of Gold Lie?
  • 21 hours Bitcoin Soars Amid Tether Drama
  • 2 days Fake Cheese, Hooters, And Big Banks: The Millennial Market Hitlist
  • 3 days “Enormous Piles Of Cash” Are About To Return To The Market
  • 4 days UAE Approves ICOs As Equities Markets Lose Momentum
  • 5 days Has The Stock Market Reached A Tipping Point?
  • 5 days Why Brazil’s Presidential Election Matters For Markets
  • 5 days Latin America’s Love-Hate Relationship With Crypto
  • 5 days Investors Panic As Market Correction Continues
  • 6 days “Rising Inequality” Could Impact America’s AAA Credit Rating
  • 6 days Ford Continues To Struggle As Trade War Escalates
  • 6 days Buy On The Cannons. Sell On The Trumpets.
  • 6 days India May Be Planning Its Own Government-Backed Cryptocurrency
  • 7 days Have Banks Hit ‘Peak Profitability’?
  • 7 days Big Tech Against The Wall As Privacy Concerns Mount
  • 7 days Giant Gold Deal Brings Hope To Precious Metals Markets
  • 7 days UK Prepares For Cyberwar As Relations With Russia Deteriorate
  • 8 days Erdogan Turns His Back On The IMF As Lira Crisis Worsens
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