EU to Launch Iran Payment Channel Soon: Mogherini

Brussels will create an alternative payment channel to facilitate financial transactions between the European Union and Iran and bypass the US sanctions in the near future, the EU's top diplomat, Federica Mogherini, said.

"I will expect this instrument to be established in the coming weeks before the end of the year as a way to protect and promote legitimate business," EU's foreign policy chief told reporters on Monday, RT reported.

The 28-nation bloc has been considering ways to continue doing business with Tehran and bypass US economic restrictions after Washington pulled out of the Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), and reimposed economic sanctions.

In November, EU officials proposed creating a clearinghouse, or a special purpose vehicle (SPV), to facilitate financial transactions with Iran. The proposal failed to reach an agreement after not a single EU country agreed to host such a mechanism out of fear of punitive measures that Washington may potentially introduce against them.

Later, however, France and Germany agreed to host the SPV, the German magazine Wirtschaftswoche reported recently.

According to the paper, it has been agreed that the related company be located in France and its director to be chosen from Germany.

Shortly after President Donald Trump pulled the US out of the JCPOA, leaders of European states activated legislation banning the bloc's companies from complying with US sanctions against the Islamic Republic.

However, the measure failed to prevent European business giants, including Total, Volkswagen, Daimler, Peugeot, Renault and Siemens from withdrawing from the country. European multinationals are much more concerned about losing the US market than the possible fines they could face from Brussels for leaving Iran.