Nations sidestep Iran sanctions

BERLIN — Three European countries working to preserve a deal that was meant to prevent Iran from obtaining a nuclear weapon have established a new system so their companies can continue trading with the Mideast nation without incurring U.S. sanctions, diplomats said Thursday.

The barter-type system set up by France, Germany and Britain is designed to allow businesses they host to skirt direct financial transactions with Iran and thereby evade possible U.S. sanctions, setting up a potential collision with President Donald Trump’s hard-line policies on Tehran.

Once the process is up and running, a financial institution, known as an “Instrument in Support of Trade Exchanges” or INSTEX, would run a payment channel, brokering Iranian imports in and European exports out, while insulating the companies involved.

In a joint statement, the foreign ministers of Germany, Britain and France sought to allay Washington’s possible fears.

“INSTEX will function under the highest international standards with regards to anti-money laundering, combating the financing of terrorism and EU and U.N. sanctions compliance,” their statement said.

The three nations have been working on the plan for months. It follows Trump’s decision last year to unilaterally withdraw from the international accord aimed at preventing Tehran from developing nuclear weapons in exchange for economic incentives. His administration also introduced new sanctions on Iran.

The other parties to the 2015 agreement — France, Britain, Germany, Russia and China — have been scrambling to keep the deal alive. In recent months, Iranian officials threatened to resume enriching uranium to higher purities than allowed under the deal, putting pressure on the Europeans to find a way around the sanctions.