Europe has announced it will allow firms to avoid SWIFT and American sanctions

Is Europe developing some balls?

Meanwhile the G20 has given a chance to pretend the world is not headed to wall.

Western, corporate media does nothing but pretend.

This is EXTREMELY serious unless someone backs down.

Trump To Unleash Hell On 
Europe: EU Announces 
Channel To Circumvent 
SWIFT And Iran Sanctions Is 
Now Operational

Zero Hedge,

28 June, 2019

With the world waiting for the first headlines from the Trump-Xi meeting, the most important and unexpected news of the day hit moments ago, when Europe announced that the special trade channel, Instex, that will allow European firms to avoid SWIFT and bypass American sanctions on Iran, is now operational.

Following a meeting between the countries who singed the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), which was ditched by US, French, British and German officials said the trade mechanism which was proposed last summer and called Instex, is now operational.

As a reminder, last September, in order to maintain a financial relationship with Iran that can not be vetoed by the US, Europe unveiled a "Special Purpose Vehicle" to bypass SWIFT. The mechanism would facilitate transactions between European and Iranian companies, while preventing the US from vetoing the transactions and pursuing punitive measures on those companies and states that defied Trump. The payment balancing system will allow companies in Europe to buy Iranian goods, and vice-versa, without actual money-transfers between European and Iranian banks.

The statement came after the remaining signatures of JCPOA gathered in Vienna for a meeting that Iranian ministry spokesman Abbas Mousavi called  "the last chance for the remaining parties...to gather and see how they can meet their commitments towards Iran."

Until today, Tehran was skeptical about EU's commitment to the deal and threatened to exceed the maximum amount of enriched uranium allowed it by the deal after US had imposed a series of sanctions on the country.

Meanwhile, opponents of Instex - almost exclusively the US - have argued that the mechanism is flawed because the Iranian institution designated to work with Instex, the Special Trade and Finance Instrument, has shareholders with links to entities already facing sanctions from the U.S.  

The announcement sent oil sharply lower, with crude futures falling about $1/bbl in closing minutes before settlement, extending daily loss, as it means Iran now has a fully functioning pathway to receive payment for oil it exports to anyone it chooses.

The announcement will likely send president Trump off the rails, because in late May Bloomberg reported that as part of Trump's escalating battle with "European allies" over the fate of the Iran nuclear accord, he was "threatening penalties against the financial body created by Germany, the U.K. and France to shield trade with the Islamic Republic from U.S. sanctions" including the loss of access to the US financial system.

According to Bloomberg, the Treasury Department’s undersecretary for terrorism and financial intelligence, Sigal Mandelker, sent a letter on May 7 warning that Instex, the European SPV to sustain trade with Tehran, and anyone associated with it could be barred from the U.S. financial system if it goes into effect.

“I urge you to carefully consider the potential sanctions exposure of Instex,” Mandelker wrote in an ominous letter to Instex President Per Fischer. "Engaging in activities that run afoul of U.S. sanctions can result in severe consequences, including a loss of access to the U.S. financial system."

Germany, France and the U.K. finalized the Instex system in January, allowing companies to trade with Iran without the use of U.S. dollars or American banks, allowing them to get around wide-ranging U.S. sanctions that were imposed after the Trump administration abandoned the 2015 Iran nuclear deal last year.

“This is a shot across the bow of a European political establishment committed to using Instex and its sanctions-connected Iranian counterpart to circumvent U.S. measures,” said Mark Dubowitz, the chief executive officer of the Foundation for Defense of Democracies in Washington.

Here is a simpler summary of what just happened: this was the first official shot across the bow of the USD status as a global reserve currency, and not by America's adversaries but by its closest allies. And once those who benefit the most from the status quo openly revolt against it, the countdown to the end of the USD reserve status officially begins.

* * *

When asked to comment on the letter, the Treasury Department issued a statement saying “entities that transact in trade with the Iranian regime through any means may expose themselves to considerable sanctions risk, and Treasury intends to aggressively enforce our authorities.”

The US ire was sparked by the realization - and alarm - that cracks are appearing in the dollar's reserve status, opponents of Instex argue - at least for public consumption purposes - that the mechanism is flawed because the Iranian institution designated to work with Instex, the Special Trade and Finance Instrument, has shareholders with links to entities already facing sanctions from the U.S

.

Separately, during a visit to London on May 8, Mike Pompeo also warned that there was no need for Instex because the U.S. allows for humanitarian and medical products to get into Iran without sanction.

“When transactions move beyond that, it doesn’t matter what vehicle’s out there, if the transaction is sanctionable, we will evaluate it, review it, and if appropriate, levy sanctions against those that were involved in that transaction,” Pompeo said. “It’s very straightforward.”

In conclusion, one month ago we said that "In 2018, Europe made a huge stink about not being bound by Trump's unilateral breach of the Iranian deal, and said it would continue regardless of US threats. But now that the threats have clearly escalated, and Washington has made it clear it won't take no for an answer, it will be interesting to see if Europe's resolve to take on Trump - especially in light of the trade war with China - has fizzled. "

The answer, it appears is that Europe felt unexpectedly emboldened, just hours before Trump's meeting with Xi, and that it is ready and willing to call Trump's bluff; it goes without saying, that if the US does indeed retaliate and proceed with sanctions against European banks, than the global trade war is about to turn far, far uglier.

Europe Activates "INSTEX" to Trade with Iran; US Threatens Sanctions - EUROPE THREATENS TO PULL ALL FUNDS FROM U.S. BANKS!

Hal Turner,
28 June, 2019


With the world waiting for the first headlines from the Trump-Xi meeting, the most important and unexpected news of the day hit moments ago, when Europe announced that the special trade channel, Instex, that will allow European firms to avoid SWIFT and bypass American sanctions on Iran, is now operational.

Following a meeting between the countries who singed the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), which was ditched by US, French, British and German officials said the trade mechanism which was proposed last summer and called Instex, is now operational.

As a reminder, last September, in order to maintain a financial relationship with Iran that can not be vetoed by the US, Europe unveiled a "Special Purpose Vehicle" to bypass SWIFT. The mechanism would facilitate transactions between European and Iranian companies, while preventing the US from vetoing the transactions and pursuing punitive measures on those companies and states that defied Trump. The payment balancing system will allow companies in Europe to buy Iranian goods, and vice-versa, without actual money-transfers between European and Iranian banks.

The statement came after the remaining signatures of JCPOA gathered in Vienna for a meeting that Iranian ministry spokesman Abbas Mousavi called  "the last chance for the remaining parties...to gather and see how they can meet their commitments towards Iran."

Until today, Tehran was skeptical about EU's commitment to the deal and threatened to exceed the maximum amount of enriched uranium allowed it by the deal after US had imposed a series of sanctions on the country.

Meanwhile, opponents of Instex - almost exclusively the US - have argued that the mechanism is flawed because the Iranian institution designated to work with Instex, the Special Trade and Finance Instrument, has shareholders with links to entities already facing sanctions from the U.S.  

The announcement will likely send president Trump off the rails, because in late May Bloomberg reported that as part of Trump's escalating battle with "European allies" over the fate of the Iran nuclear accord, he was "threatening penalties against the financial body created by Germany, the U.K. and France to shield trade with the Islamic Republic from U.S. sanctions" including the loss of access to the US financial system.

According to Bloomberg, the Treasury Department’s undersecretary for terrorism and financial intelligence, Sigal Mandelker, sent a letter on May 7 warning that Instex, the European SPV to sustain trade with Tehran, and anyone associated with it could be barred from the U.S. financial system if it goes into effect.

“I urge you to carefully consider the potential sanctions exposure of Instex,” Mandelker wrote in an ominous letter to Instex President Per Fischer. "Engaging in activities that run afoul of U.S. sanctions can result in severe consequences, including a loss of access to the U.S. financial system."

Germany, France and the U.K. finalized the Instex system in January, allowing companies to trade with Iran without the use of U.S. dollars or American banks, allowing them to get around wide-ranging U.S. sanctions that were imposed after the Trump administration abandoned the 2015 Iran nuclear deal last year.

“This is a shot across the bow of a European political establishment committed to using Instex and its sanctions-connected Iranian counterpart to circumvent U.S. measures,” said Mark Dubowitz, the chief executive officer of the Foundation for Defense of Democracies in Washington.

Here is a simpler summary of what just happened: this was the first official shot across the bow of the USD status as a global reserve currency, and not by America's adversaries but by its closest allies. And once those who benefit the most from the status quo openly revolt against it, the countdown to the end of the USD reserve status officially begins.

When asked to comment on the letter, the Treasury Department issued a statement saying “entities that transact in trade with the Iranian regime through any means may expose themselves to considerable sanctions risk, and Treasury intends to aggressively enforce our authorities.”

The US ire was sparked by the realization - and alarm - that cracks are appearing in the dollar's reserve status, opponents of Instex argue - at least for public consumption purposes - that the mechanism is flawed because the Iranian institution designated to work with Instex, the Special Trade and Finance Instrument, has shareholders with links to entities already facing sanctions from the U.S.

Separately, during a visit to London on May 8, Mike Pompeo also warned that there was no need for Instex because the U.S. allows for humanitarian and medical products to get into Iran without sanction.

“When transactions move beyond that, it doesn’t matter what vehicle’s out there, if the transaction is sanctionable, we will evaluate it, review it, and if appropriate, levy sanctions against those that were involved in that transaction,” Pompeo said. “It’s very straightforward.”

In conclusion, one month ago we said that "In 2018, Europe made a huge stink about not being bound by Trump's unilateral breach of the Iranian deal, and said it would continue regardless of US threats. But now that the threats have clearly escalated, and Washington has made it clear it won't take no for an answer, it will be interesting to see if Europe's resolve to take on Trump - especially in light of the trade war with China - has fizzled. "

The answer, it appears is that Europe felt unexpectedly emboldened, just hours before Trump's meeting with Xi, and that it is ready and willing to call Trump's bluff; it goes without saying, that if the US does indeed retaliate and proceed with sanctions against European banks, than the global trade war is about to turn far, far uglier.

LATE BREAKING UPDATE 6:26 PM EDT -- Europe has told the US Treasury that if the United States begins sanctioning any European country or company over Iran trade, European entities will WITHDRAW their funds from US Banks and Financial Markets, sending certain banks into collapse immediately

And from Iran's Press TV

https://www.presstv.com/Detail/2019/06/28/599663/Iran-nuclear-deal-Instex-Vienna-diplomats-Abbas-Araqchi

Iran's deputy foreign minister says progress has been made in Vienna talks aimed at saving the 2015 nuclear deal with world powers but the demands of the Islamic Republic are yet to be met.

"It was a step forward, but it is still not enough and not meeting Iran’s expectations," Abbas Araqchi told reporters on Friday after almost four hours of talks with senior diplomats from Britain, China, France, Germany and Russia.

On Friday, the remaining signatories of the nuclear agreement met in the Austrian capital as a last-ditch effort to save the accord after the US withdrew last year.

US President Donald Trump withdrew Washington in May 2018 from the multilateral nuclear accord, officially known as the Joint Comprehensive Plan of Action (JCPOA), which was reached between Iran and six world powers in 2015.

Afterwards, Washington re-imposed unilateral sanctions on Iran that had been lifted under the deal.

European signatories to the nuclear deal are facing a two-month ultimatum to help Iran navigate US sanctions or see Tehran take the second step of reducing its commitments on July 7.

In early May, Tehran suspended limits on its production of enriched uranium and heavy water, moves that did not technically violate the deal but signaled that its patience was wearing thin.

Referring to Iran's decision to go over the deal's core atomic restrictions, Araqchi said, "The decision to reduce our commitments has already been made in Iran and we continue on that process unless our expectations are met."

"I don’t think the progress made today will be enough to stop our process but the decision will be made in Tehran," he added.

Iran says it will take the second step in reducing its commitments under the 2015 nuclear deal more “firmly” if a European payment system designed to bypass sanctions proves to be "superficial".

'INSTEX operational'

Araqchi said the Europeans have confirmed that the planned INSTEX trade mechanism is now “operational” and the first transactions are already processed.

However, the Iranian official added that this was still insufficient because European countries were not buying Iranian oil.

"For INSTEX to be useful for Iran, Europeans need to buy oil or consider credit lines for this mechanism otherwise INSTEX is not like they or us expect," he said.

The European Union also issued a statement, saying the special trade channel was up and running

"France, Germany and the United Kingdom informed participants that INSTEX had been made operational and available to all EU member states and that the first transactions are being processed," sad the statement.

The trade mechanism was established last year after the US' withdrawal from the JCPOA.

France, Germany and Britain had been tinkering with INSTEX for months without making it operational, leaving Iran wondering whether they are serious about the idea.

In a joint statement earlier on Friday, Austria, Belgium, Finland, the Netherlands, Slovenia, Spain and Sweden, said they were working with the E3 to develop trade mechanisms.

Araqchi said all the parties in Vienna had agreed to hold a ministerial meeting "very soon."

China to continue to import Iranian oil

China has rejected the imposition of unilateral US sanctions on Iran, saying it would import Iranian oil in defiance of Washington’s bans on Tehran.

"We reject the unilateral imposition of sanctions," said Fu Cong, the director general of the Chinese Foreign Ministry's Department of Arms Control, on Friday.

Cong made the remarks a day before US and Chinese leaders are to meet on the sidelines of the G20 summit in Japan in an attempt to resolve trade disputes.

"For us energy security is important and the importation of oil is important to Chinese energy security and also to the livelihood of the people," said Cong.

American special envoy for Iran Brian Hook has said the US will sanction any country that imports oil from the Islamic Republic and there are no exemptions in this regard

The Trump administration said on April 22 that, in a bid to reduce Iran's oil exports to zero, buyers of Iranian oil must stop purchases by May 1 or face sanctions. The move ended six months of waivers, which allowed Iran’s eight biggest buyers -- Turkey, China, Greece, India, Italy, Japan, South Korea and Taiwan -- to continue importing limited volumes.

"We do not accept this so-called zero policy of the United States," said Cong, who was speaking on the sidelines of a meeting on the implementation of the Iranian nuclear deal.

The United States' insistence on zeroing out Iran's oil exports has caused many problems in the global market, keeping confused both experts and buyers as they look straight into what is shaping up to be a chaotic chapter for the petroleum industry.

China and several other major purchasers of Iranian oil have already complained to the US about the decision.