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1 Feb, 2019 12:09

European firms ‘won’t dare’ use new EU payment system for trade with Iran out of fear of US

European firms ‘won’t dare’ use new EU payment system for trade with Iran out of fear of US

A new mechanism to allow “legitimate trade” with Iran, which was set up by France, Germany, and the UK this week, doesn’t change anything for European companies, according to independent journalist Luc Rivet.

He told RT that European companies and others cannot feel confident that they could do business with Iran without being subject to US sanctions.

“I don’t know what companies will make use of that mechanism to sell to Iran,” he said, adding that it’s very dangerous for the companies if they are caught working in Iran.

Also on rt.com EU countries move to evade US’ Iran sanctions by setting up payment channel for ‘humanitarian’ trade

Europe mentions that medical equipment could be sold through this way, says Rivet.

“Who produces this equipment? You think that Siemens will sell to Iran? Never, because they sell to America many other things as well… And Siemens is afraid of losing the American market.”

He explained that an “incredible number of companies” won’t have anything to do with Iran, including the banking sector, the oil and gas sector, and others.

Even small companies will hesitate to sell anything to Iran at risk of being caught, according to Rivet. They can do that through other channels, like via Turkey, he said.

Also on rt.com Switzerland & Iran developing payment channel to bypass US sanctions

The journalist added: “It’s much easier for Chinese and Russian companies to make deals with Iran. The Europeans are scared in an incredible way. The companies are afraid by ricochet of being in the eye of the storm with the Americans.”

“That’s very dangerous for European companies," he repeated, adding: “I don’t know anybody who will dare to go with this Instex system.”

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