Europe launches new financial channel with Iran

Germany, France and the UK have launched a new channel to ease dealings with Iran and circumvent US sanctions on it, against the background of the US withdrawal from the nuclear agreement with the Islamic Republic.

The new channel aims at facilitating commercial dealings between the European Union, on one hand, and Iran, on the other. Iranian Foreign Minister Javad Zarif is due to arrive in Brussels soon to discuss the draft of the official launch of the new channel.

By launching the new channel, European countries also try to curb Iranian influence in the region and containing the country's ballistic missile program which is viewed as a direct threat to Israel. The channel will also ensure the arrival of European food products to Iran.

European states expect the new channel to open the door for the preserving the nuclear deal with Iran and also dissuade Iran's mullahs to suspend terrorist operations against the Iranian opposition in European states.

Motivations behind launch of new financial channel with Iran

A number of understandings took place between Iran and European countries after the American withdrawal from the nuclear deal with the Islamic Republic. The understandings sought to ease financial dealings between the two sides and help Iran overcome the American sanctions on it. The following motivations also stand behind the launch of the new channel:

1 – Containing Iranian influence in the region

Exporting the Islamic revolution to other countries is the main focus of Iranian policy in the region. Iran has been trying to expand its influence since the Islamic Revolution of 1979. In doing this, it claimed to have aimed at fighting despots and helping the weak. Nonetheless, Iran wants to be the most powerful state in the region, only with the aim of gaining a strong negotiating position with Europe.

European countries also have strong interests in the Middle East region, especially Italy which is focused on the energy sector in the region. Iran, on the other hand, is directly linked to most jihadist groups active in the region, especially in Syria and Iraq.

Iran tries to influence the course of events in the region by backing non-state actors, such as Hezbollah in Lebanon and the Houthis in Yemen. Iran also tries to influence regional elections by offering backing to some groups so that they can reach power in their countries.

However, Iranian policies led to fragmenting the social fabric of Arab states because of their dependence on fanning sectarian zealotry.

2 – Containing the Iranian ballistic missile program

Iran launched a number of ballistic missiles since the signing of the nuclear deal, despite the presence of a clause in the deal that bans this kind of activity. Iran, however, justifies this by saying that this activity has peaceful purposes.

On January 10, Iranian President Hassan Rouhani said his country would launch missiles that carry satellites into the orbit, in a clear defiance of resolution no. 2231.

This turns the ballistic missiles file into an important issue in French-Iranian relations. French Foreign Minister Jean-Yves Le Drian said his country was ready to impose new sanctions on Iran if no progress was achieved in talks on the country's ballistic missile program. The sanctions, he added, could include a freezing of the assets of the members of the Revolutionary Guard Corpse and employees involved in the Iranian ballistic missile program.

3 – Easing the arrival of European food products

There is an acute shortage of food in Iranian markets. This is leading to an unprecedented surge in the price of food. International food companies are incapable of exporting their produce to Iran. The Islamic Republic came short of hammering out wheat and maize import deals with almost all international companies, simply because the banks are incapable of transferring payments to the companies.

An official at the Iranian Ministry of Trade and Industry conceded, meanwhile, that his country had made deals with some minor European banks that do not have dealings with the US.