Iranian official: Center of SPV financial structure may be located in France

By  Trend

The center of the financial structure envisaged in the Special-Purpose Vehicle (SPV) mechanism may be located in France, head of Iran's Trade Promotion Organization (TPO) Mohammadreza Modoudi said, Trend reports via Tasnim news agency.

He said that the financial structure will be managed by Germany, while the UK will carry out its implementation.

He added that the financial line within the SPV will help develop banking relations with Iran.

“There are reasons why France, Germany and the UK cooperate with Iran in the financial mechanism,” he said. “It is their commitment to the Joint Comprehensive Plan of Action (JCPOA) regarding Iran, and they will operate in a way that would make it difficult for the US to react to this financial mechanism.”

He said that it is still unclear to what extent the financial mechanism will contribute to the joint operation of Iranian and European companies.

Following the US sanctions against Iran in November 2018, the EU intends to establish a SPV to safeguard financial ties with Iran within the JCPOA. This financial mechanism hasn’t started operating yet.