European Union member states will set up a legal entity to facilitate legitimate financial transactions with Iran.
European Union Foreign Policy chief Federica Mogherini says the countries were still working out the technical details.
The European Union and Iran have recently come up with a brand-new legal entity to create a new payment system that enables legal trade with Iran.
The deal has been announced in a bid to avoid the US’ sanctions. The countries from European Union had earlier requested the United States to exempt European companies from the sanctions imposed on Iran.
The US instigated re-imposing sanctions against Iran after retreating from the nuclear deal in May this year.
Addressing the deal at the United Nations together with Iranian Foreign Minister Mohammad Javad Zarif, EU foreign policy chief Federica Mogherini said the countries were still working out the technical details.
“In practical terms, this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world,” Mogherini told reporters.
Mogherini further said, “the remaining members of the Joint Comprehensive Plan of Action (Britain, China, France, Germany and Russia) would also maintain their commitments to support Iran on civilian nuclear energy.
In 2008 Iranian exports to the EU amounted to €11.3 billion and imports from the EU amounted to €14.1 billion.
EU exports to Iran are mainly machinery and transport (54.6%), manufactured goods (16.9%) and chemicals (12.1%).
In 2011, Iran ranked 7th in exporting crude oil to Europe and a Eurostat report stated that 27 European states imported 11.4 billion Euros of goods from Iran in the first nine months of 2011.