Mogherini Optimistic About Establishing Special Trade Mechanism with Iran by November 1

Federica Mogherini, the EU's foreign policy chief, expressed hope on Wednesday, September 26, that a special mechanism to facilitate trade cooperation with Iran would be implemented before "November" (November 1). According to Reuters, the Special Purpose Vehicle (SPV) is intended to enable trade and financial transactions with Tehran amid the enforcement of U.S. sanctions against Iran. In response to a question regarding the timing of this cooperation channel with Iran, Mogherini stated, "I think it will be implemented before November." The foreign ministers of France, Russia, China, and the UK, along with Germany, met on Monday with the Iranian foreign minister, and in a statement, they announced their efforts to find solutions for providing financial and banking facilities to the Islamic Republic during the U.S. sanctions period. Mogherini referred to the U.S. as Europe's strongest ally but emphasized that no country or organization can accept another country dictating who it can trade with. While the EU foreign policy chief announced the start of this special trade channel with Iran, U.S. President Donald Trump warned that any individual or country violating Iran's sanctions would face U.S. repercussions. On Wednesday, Trump stated without naming Europe, China, and Russia, which have remained committed to the JCPOA, that "any person or entity that does not comply with U.S. sanctions against Iran will face severe consequences." Mike Pompeo, the U.S. Secretary of State, also described the European countries' initiative to create a special cooperation mechanism with Iran as one of the most unconstructive actions imaginable for global peace and security, accusing them of strengthening Iran as the most significant state sponsor of terrorism. Trump believes that the nuclear agreement neither serves U.S. national interests nor prevents Iran from ultimately acquiring nuclear weapons, nor does it stop issues such as "support for terrorism," "destabilizing activities," or the development of the Islamic Republic's missile program. Following Trump's decision, sanctions against Iran were reinstated, with the first phase already implemented and the second phase, involving oil sanctions, set to take effect on November 4. The remaining countries in the JCPOA are trying to encourage Iran to remain committed to the agreement despite the U.S. withdrawal and the return of sanctions, hence seeking a mechanism to mitigate the impact of U.S. sanctions.