What Happened: A special purpose vehicle (SPV) for transactions between Iran and the European Union will be formed within the next two to three weeks, The Wall Street Journal reported Jan. 17. The SPV will likely operate from France, feature a German managing director and include British stakeholders.
Why It Matters: Actual progress toward forming the SPV would be a notable development as Iran has continued to pressure European countries to move forward in establishing the mechanism, but states that would host or participate in the SPV will risk exposure to U.S. diplomatic pressure and potential sanctions.
Background: The United States withdrew from the JCPOA — commonly known as the Iran nuclear deal — in May, reimposing sanctions on Iran. Proposing the creation of the SPV to facilitate financial transactions with Iran is part of a European strategy to keep Iran in the JCPOA.
- The U.S. Supersizes Its Sanctions (Dec. 6, 2018)
- Why Iran's Government Will Bear the Weight of U.S. Sanctions (Nov. 21, 2018)
- Iran Feels the Effects of U.S. Sanctions (Nov. 6, 2018)