Switzerland and Iran are developing payment channel to circumvent US sanctions

Switzerland and Iran have developed a payment channel to circumvent US sanctions. This financial mechanism should enable the maintenance of trade between the two states. That said the head of the joint chamber of commerce of both countries.

A special financial mechanism to maintain trade relations between Switzerland and Iran should be ready for implementation. This was announced by Sharif Nezam-Mafi, head of the joint chamber of commerce of the two countries.

He told the news agency IRNA that the new clearing house will be used to facilitate Iran's oil transactions with its major Asian commodity customers - India, China and South Korea. The head of the Iran-Swiss Chamber of Commerce stated:

"At present, there is no money in Europe that belongs to Iran. The bulk of Iranian money goes to India, China and South Korea, which import Iranian crude oil."

According to Nezam-Mafi, the Swiss financial channel will start work as soon as Iranian oil money flows from Asia to Europe. The Swiss Ambassador in Tehran, Marcos Lightner, told IRNA that both sides are preparing an independent payment channel in addition to the Special Purpose Vehicle (SPV). He pointed out that although Switzerland is not a member of the European Union, Switzerland consistently pursues the issue of implementing the SPV. The diplomat stressed that European countries are trying to uphold the Iranian nuclear deal.

The new payment channel between Iran and Switzerland is designed to circumvent the US sanctions against the Islamic Republic, after Washington abrogated the 2015 nuclear agreement with Tehran last year.

The European Union is also working on a financial mechanism to facilitate non-US dollar trade with Iran and bypass US sanctions. She hopes that the SPV announced in September will keep the nuclear contract alive. Foreign companies should be given an opportunity to trade with the country without violating Washington's sanctions.