Speaking on Wednesday, EU foreign policy chief Federica Mogherini offered additional comments on the “special purpose vehicle,” or clearing house, that the EU is establishing to allow companies to trade with Iran without having to transfer any money internationally, or do any international banking that the US might threaten.
Mogherini now says the goal is to have the system in place before November, adding that the EU considers it unacceptable for the US to try to decide who Europe is allowed to trade with.
The US responded angrily to the news that the clearing house is being established, and that both Russia and China will be included in the system as well as EU countries. US officials have said they won’t allow the EU to defy their sanctions, though it isn’t clear they have any legal recourse in the matter.
The clearing house is intended to allow EU and other countries to import Iranian oil, but the money for that oil into the clearing house, and then for Iran to use that money to pay other foreign companies for goods and services provided to Iran. With no money crossing borders, US banking sanctions will not apply.