A Cuban official sees EU effort to sidestep Iran sanctions as blueprint to break US international embargo’s.
Cuba is watching closely the development of the Special Purpose Vehicle (SPV), which the EU is crafting to circumvent US sanctions on Iran, senior Cuban foreign ministry official Rodolfo Reyes said in an interview with AFP.
According to Reyes, Cuba thinks a similar mechanism might be created in the future for Havana to avoid the US embargo on the Caribbean island.
The SPV is intended as a countermeasure to USA-imposed sanctions on Iran, allowing the EU and other countries to match Iranian oil exports to goods Tehran imports, effectively creating an international barter exchange system by utilizing virtual “credits” instead of US dollars.
Cuba is in a very similar position, still suffering from the comprehensive trade embargo imposed on it by the USA back in 1960’s.
The first wave of US sanctions on Iran were enacted in August of this year, but the SPV’s creation remains bogged down with technicalities. Some experts have expressed their skepticism over the effectiveness of such an institution.
Many major international companies have announced they are pulling out of Iran, and on November 5 the US introduced a fresh set of sanctions aimed at isolating Iran’s banks from international finance and slashing its oil exports.
Sputnik / ABC Flash Point News 2018.