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Thread by @HeshmatAlavi: "1) While the title seems very bold against the U.S. & in favor of 's regime, taking a deeper look sheds interesting light. The "spe […]" #Iran #IranSanctions

, 19 tweets, 7 min read
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1)
While the title seems very bold against the U.S. & in favor of #Iran's regime, taking a deeper look sheds interesting light.

The "special purpose vehicle" is nothing but a "paper tiger"...
ft.com/content/e75b91…
2)
"But the EU, which along with China and Russia remains committed to the nuclear deal, is struggling with the limited tools at its disposal to fight the sanctions and facilitate continued trade with the Islamic republic."

#IranSanctions
3)
"Like almost all other EU states, France has so far received no exemptions for doing business with Iran. Leading French companies, including Peugeot parent PSA and oil group Total, have already announced plans to curb their Iran activities."

#IranSanctions
4)
"Europe’s difficulties were laid bare on Monday, when Swift, the Belgium-based global financial messaging system, said it would fall into line with the US restrictions by disconnecting targeted Iranian banks."

#IranSanctions
5)
"EU moves to set up a separate channel to trade with Iran, known as a special-purpose vehicle, have been delayed after a failure to agree crucial details. These include where it would be based, with countries fearing a political & economic backlash from DCif they host it."
6)
"But the work to create the SPV, led by the so-called E3 — France, Germany and Britain — has prompted scepticism."

#IranSanctions
7)
“If they are really serious about it, it should be up and running already,” said one diplomat from a non-E3 country that has backed efforts to save the nuclear deal. “Some people think this is just a political gesture.”
8)
While refusing to name possible host countries, he said there had been expressions of interest. The priority was to find a city that had experience “welcoming international institutions” and the most “stable and rigorous” legal framework possible, LeMarie said.

#IranSanctions
9)
"... refusing to name possible host countries,..." ??

That sounds VERY promising.
10)
But critics say companies will not be willing to risk the wrath of Washington to safeguard their business with Iran.
Gordon Sondland, US amb. to the EU, on Monday dismissed the planned SPV as “nothing more than a paper tiger”, adding: “I wouldn’t touch it with a 10-ft pole.”
11)
Here's more input about Europe's SPV:

"Even in Europe, economists and officials doubt the new financial channel will yield significant economic benefits for Iran or threaten the global dominance of the dollar anytime soon."
nytimes.com/2018/10/31/us/…
12)
"... this theoretical SWIFT alternative would not have the ability to conduct business in dollars or to access U.S. institutions and the U.S. financial system as a whole..."
washingtonexaminer.com/policy/defense…
13)
“The EU has struggled to find a member state to host a new financial channel to shield trade with Iran from looming US sanctions, diplomats said, in the latest hurdle to the bloc’s efforts to save a landmark nuclear deal with Tehran.”

ft.com/content/0cb553…
14)
“The EU has struggled to find a member state to host a new financial channel to shield trade with Iran from looming US sanctions, diplomats said, in the latest hurdle to the bloc’s efforts to save a landmark nuclear deal with Tehran.”

ft.com/content/0cb553…
15)
The EU's special purpose vehicle is viewed as being "largely symbolic."
ft.com/content/6eef94…
16)
"…a plan by European nations aimed at maintaining trade with Iran was unlikely to help…"

“The European payment mechanism doesn’t shield you if you use the U.S. financial system ... you can pay but don’t expect to be on their Christmas card list,”
reuters.com/article/us-oil…>
17)
"Officials have said they are watching such engineering attempts closely, although few economists and officials in Europe believe such efforts will offer Tehran much in the way of sanctuary from American penalties immediately."
nytimes.com/2018/10/11/us/…
18)
"So far, her 'vehicle' is stuck in bureaucratic mud, unable to take off as European firms leave Iran in droves."
nypost.com/2018/10/26/is-…
19)
Conclusion? Yours to make.

Thanks for reading!

At the end of the day, what is your opinion?

Will the EU's SPV plan save #Iran's regime from U.S. sanctions?
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