German Foreign Minister: Special Financial Mechanism for Iran to Be Implemented Soon

On Monday, February 8, the German Foreign Minister stated that the European Union is on the verge of implementing an alternative method for transferring money to Iran that will bypass U.S. sanctions. This special financial mechanism is part of the EU's efforts to maintain the international agreement aimed at curbing Iran's nuclear ambitions. Donald Trump, the U.S. President, who has always described this agreement as 'one-sided and bad,' withdrew from it last May. According to the Associated Press, Heiko Maas, the German Foreign Minister, said at a press conference in Brussels: 'The special financial mechanism has not yet been officially registered, but it will be registered, and the implementation of this program is imminent.' He added that the EU's goal is to ensure that 'transactions and economic activities not sanctioned by the U.S. can proceed and that there is a suitable payment solution.' Without going into details, he mentioned that the German government has been cooperating with France, Britain, and other European allies in recent months to formulate and implement this plan. EU member state representatives discussed Iran on Monday but did not announce the completion of the special financial mechanism plan. This issue is likely to be discussed at the two-day meeting of EU foreign ministers starting Tuesday in Romania. The Associated Press adds that for several weeks, EU officials have stated that the special financial mechanism is ready for implementation, but they have not disclosed information about the host country and other participating countries due to concerns about potential U.S. actions against this plan. The U.S. government has warned EU members that if they circumvent sanctions against Iran, they will likely face severe penalties. Nevertheless, the EU emphasizes that the nuclear agreement with Iran is crucial for regional and global security. The EU has previously enacted regulations that legally prohibit member companies from complying with U.S. sanctions without obtaining permission from Brussels. These regulations nullify potential U.S. lawsuits and legal actions in European courts, allowing European companies to recover financial losses caused by sanctions from the sanctioning entity and country. The German Foreign Minister stressed, 'We do not want Iran to exit this agreement (JCPOA) and resume enrichment.'