German Foreign Minister Heiko Maas said the the European Union was launching an alternative channel to send money to Iran that would sidestep the US sanctions. A furious Mr Trump has threatened stiff fines and penalties against any country that breaks the sanction he re-imposed on Iran last year after America controversially pulled out of an international agreement covering the Islamic Republic’s nuclear energy programme.
Europe is keen to keep the UN-backed pact alive and has set up a “special purpose vehicle” (SPV) enabling trade to continue by accepting payments from companies that want to deal with Iran, either by receiving waivers for oil imports or permissible trade in goods like food and medicine.
Mr Maas said: “As far as the special purpose vehicle is concerned: it will be registered, it has not yet been registered, but I would say that the implementation of our plan is imminent.”
He said the EU’s aim was to ensure “business not sanctioned by the US can be upheld, and there is a suitable instrument for international payments”.
The minister said Britain, Germany and France were the driving forces behind the SPV but other EU partners had become involved in recent months to set it up.
EU ambassadors discussed Iran yesterday but did not announce the SPV’s completion. It is likely to be discussed when EU foreign ministers meet over two days in Romania from Thursday.
Senior EU officials have been saying for weeks that the financing mechanism would be up and running soon but have been coy over the details amid fears Mr Trump will target the country where it is based and any others taking part.
The White House has been warning the Europeans that they could face stiff fines and penalties should they try to circumvent the sanctions.
The Trump administration has deemed the channel an attempt to evade its “maximum pressure” campaign against Iran.
But the EU insists the nuclear pact, described by Mr Trump as a “horrible, one-sided deal”, is vital to regional and global security.
Brussels has already introduced measures to stop European companies from complying with the US sanctions without authorisation from EU officials.
The measures block the effect of any US court action in Europe and allow European firms to recover damages arising from the sanctions from anyone who causes them.
Mr Maas said: “We don’t want Iran to leave this agreement and start the enrichment of uranium again.”
Iran’s nuclear chief, Ali Akbar Salehi, said last week his country to resume nuclear enrichment with more advanced technology if the agreement fails.
Iran is considering producing nuclear fuel used in naval propulsion, implying it may ramp up uranium enrichment levels closer to the purity needed for weapons.