Despite the efforts by European countries especially France, Germany and Britain to save Iran nuclear deal, Western companies are better off leaving Iran than facing consequences of US sanctions, suggest a new study published on October 19th by the interpreter.
European countries introduced a system, so-called “Special Purpose Vehicle (SPV),” which is a non-US dollar dominated payment system, aiming at facilitating transaction between European companies and Tehran.
The payment system is believed to be ineffective as many European companies have already left Iran before the US new round of sanction on November 5th.
“If the US choses to take a hard line it could decide to sanction any EU company that uses the SPV, including a company’s US employees or US subsidiaries,” the report wrote.
In case of a US sanction against new European payment system, European business must decide whether they want to have access to US market or Iranian market.
It will force the companies “to make a choice between access to the Iranian Market and the US market,” which is 45 times the size of Iran’s, explained the report.
US president Donald Trump left Iran deal on May and will impose a new round of sanction on November.
“Logically, a large number of companies have already signaled their intent to leave Iran as to not risk access to the US market,” added the report.
