A European trade mechanism to barter humanitarian and food goods with Iran will ...
PARIS - A European trade mechanism to barter humanitarian and food goods with Iran will not work until Tehran sets up a mirror company and meets international standards against money-laundering and terrorism financing, a French diplomatic source said.
French President Emmanuel Macron has led those efforts and is trying to clinch a $15 billion credit line that would offset tough U.S. sanctions that have strangled Iran’s oil exports, but that requires getting some backing from Washington. Iran’s parliament has approved some new measures against funding terrorism under pressure to adopt international standards. But the Guardian Council, which vets laws and elections for compliance with Iran’s Islamic constitution, blocked a draft law in 2018 on the grounds it would prevent the Islamic Republic from providing financial support to Hezbollah in Lebanon, which is under U.S. sanctions.
The United States would have the economic clout to block any credit line for Iran or sanction companies trading with it. The credit line proposal would appear to contradict Washington’s stated policy of working to force Tehran to rein in its nuclear and missile programs as well as what the White House views as its destabilizing regional behavior. U.S. officials have repeatedly said they do not believe Instex will get off the ground, but Sondland’s comments left open the possibility that Trump could accept Macron’s proposal.
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