Austria’s refusal to play host to a Special Purpose Vehicle (SPV) payment system that would circumvent U.S. sanctions is the latest in a series of setbacks for EU states struggling to save the 2015 nuclear deal with Iran. EU members appear to understand that playing host to the SPV increases their potential for exposure to U.S. secondary sanctions.
The big picture: Since the U.S. left the Iran nuclear deal in May, the EU has been scrambling to find creative ways to incentivize Iran to continue adhering to the accord. While EU leaders desired to have the SPV established by November, devising a sanctions-proof channel to clear trade and engage in bartering with Iran was much harder than anticipated.