The European Union continues to mull several different plans to continue trade with Iran without fearing US sanctions. Germany, France, and Britain are advocating an idea that would involve establishing a clearing house to handle all the trade.
The big stumbling block with EU companies continuing to trade with Iran is financing. US threats to punish companies involved in such trade have scared away a lot of banks, despite EU assurances that they will protect companies.
This clearing house would aim to avoid banks, and money changing hands across borders, entirely. One European company could pay the clearing house for imported Iranian oil, and the clearing house would give that money to another EU company providing goods or services to Iran.
While the US theoretically wants to sanction all trade with Iran, particularly oil imports, they have limited options to punish a European company whose business is to buy Iranian oil, or European industrial firms with projects inside Iran.
They are called “Iran sanctions” because Iran is the seller, but they are also sanctions on the buyers. The EU is a major economic competitor to the US, so “Iran sanctions” doubly help the US unless they are circumvented.
ADDED: Pls allow me to correct this comment.
Iran and European countries are both buyer and seller, and whatever side of the transaction the country is on, sanctions are a problem. Iran principally sells oil, and also has been a buyer of goods from various European countries. France’s Peugeot had (but no longer has) a major automobile factory in Iran, etc. So both sides are hurt, which obviously pleases the US.
Once again the US proves it is not an ally to anyone.
Such a clearing house is one of the origins of banking. The Knights Templar did this, and got rich doing it, before banking developed. It can be done, has been done, and works very well. Banks are easier, when they exist. Sometimes they don’t.
This is one of the big risks that comes from abusing sanctions. Once there are powerful interests in evasion, they will be evaded. Once that interest includes major players, the one doing sanctions is the one left out, the one hurt.
Another big risk was seen with overdoing sanctions on Japan in 1941, when they were backed into the Pacific War. While that might actually have been the plan and desire of some in the US doing those sanctions, that outcome is a danger all the same.
The EU should develop a Public Bank and drop their central bank nonsense, which like the Federal Reserve in the US, is killing their economy. A Public Bank run by the EU would be able to assist quite nicely for handling such monetary transaction.
Iran should be encouraged with this effort to maintain a civilized relationship.