US May Impose Sanctions On EU's Special Purpose Vehicle If In Violation - Pompeo

US May Impose Sanctions on EU's Special Purpose Vehicle if in Violation - Pompeo

The United States could impose sanctions in response to the European Union's special purpose vehicle (SPV) if it is used to conduct certain types of trade with Iran, US Secretary of State Mike Pompeo said in a press conference on Wednesday.

WASHINGTON (Pakistan Point News / Sputnik - 13th December, 2018) The United States could impose sanctions in response to the European Union's special purpose vehicle (SPV) if it is used to conduct certain types of trade with Iran, US Secretary of State Mike Pompeo said in a press conference on Wednesday.

European officials are working to create a SPV as a way to avoid US sanctions while facilitating trade with Iran. Russia and China are also involved in its creation.

"Should it be the case that the Europeans develop an SPV, we'll look at it," Pompeo said. "There are humanitarian exemptions in the sanctions that have been put in place for food stops and medicine. If the activity that is undertaken is consistent with that, we obviously won't place sanctions. But to the extent that there are violations of our sanctions, we intend to enforce them with great rigor against any party who is a participant in those violations."

Earlier on Wednesday, Pompeo said at a UN Security Council meeting that the United States wants to work with the international community to reimpose ballistic missiles restrictions on Iran in 2019.

He added that the Trump administration would continue to build a coalition of countries focused on countering Iran's illicit activities. But Pompeo noted that if Tehran demonstrates a fundamental shift in its policies, Washington would be prepared to support the modernization and reintegration of Iranian economy into the international economic system.

The United States reinstated sanctions against Iran following the country's withdrawal from the Joint Comprehensive Plan of Action (JCPOA) - the Iran nuclear agreement - in May. The first round of sanctions came into force in August, followed by a second round on November 5. The sanctions target not only Iran's economy but also those individuals and entities who continue to do business with Iran.