SPV to replace SWIFT: Iran's former UN envoy
Baku, Azerbaijan, Dec. 17
If there is a special purpose vehicle (SPV), there will be no need for physical transfer of money, Iran’s former ambassador to the UN office in Geneva Ali Khorram said in an interview with ILNA, Trend reports.
He said that SPV is a mechanism that doesn’t neutralize US sanctions, but simplifies financial and banking relations. In fact, this mechanism will work similarly to SWIFT, he added.
After withdrawal from the nuclear deal, the US wanted SWIFT to end its cooperation with Iran, and this was done, so the EU intends to find an alternative to SWIFT for Iran, Khorram said.
“SPV is a bilateral mechanism that will benefit both Iran and the EU,” he noted. “If Iran sells any product to the EU, countries of the EU will pay money to Iran through this mechanism. If Iran buys any product from the EU, it will also pay for it by using this mechanism.”
SPV doesn’t provide for the sale of oil in exchange for goods and products, as it was proposed by Russia, China, India, Japan and South Korea, he added.