CNBC: Europe, Russia, China Join Forces to Dodge Iran Sanctions

The United States withdrew from the international agreement to contain Iran’s weapons program and imposed sanctions on Iran’s oil, aviation, auto and other industries as well as others doing business with Iran. Other signatories to the agreement – France, Britain, Germany, Russia and China – have developed a “special purpose vehicle” to “assist and reassure economic operators pursuing legitimate business with Iran,” reports Natasha Turak of CNBC. But Iran is the world's seventh-largest oil producer, she explains, and Europe anticipates that harsh sanctions that isolate the country could lead to more hardline behavior. “The SVP will intend to serve as a ‘clearing house’ of sorts for transactions with Iran in order to avoid involving central and commercial banks, who fear U.S. penalties on their operations,” Turak writes. “It's a blatant show of defiance from foreign leaders who have expressed mounting frustration at Trump's foreign policies, which have been characterized by trade war antics against allies and adversaries alike, as well as financial sanctions.” The United States could retaliate against the mechanism, but that may encourage other countries to escalate efforts to counter US dominance in the global financial system. – YaleGlobal