Turkey ‘ready’ to launch SPV with Iran to bypass US sanctions

News About Turkey - NAT
3 Min Read
The two leaders agreed to continue regional security cooperation [Photo Handout from President Erdogan’s office]

Turkish President Recep Tayyip Erdogan has announced that Ankara is “ready” to establish its own trade mechanism with Iran, allowing companies from the two neighbouring countries to continue doing “legitimate” business amid punishing US sanctions.

Erdogan made the statement on Thursday during a bilateral meeting with Iranian President Hassan Rouhani on the sidelines of the three-party talks on Syria in the Russian resort city of Sochi, according to Iran’s Mehr news agency.

“Turkey is ready to join the SPV (Special Purpose Vehicle) and create a similar bilateral mechanism for trade cooperation with Iran,” he said, referring to INSTEX (Instrument In Support of Trade Exchanges), a new body set up by the European Union that process payments outside of the regular banking institution.

“Multilateral cooperation with Iran on different issues has had positive achievements and Turkey is ready to expand this cooperation to other countries in the region,” Erdogan added.

Energy, industry and transportation

No specific date has been announced when the Turkish SPV would be set up.

Rouhani said that Tehran hopes that “obstacles” are removed so the two countries will be able to strengthen bilateral cooperation.

Cooperation in the private sectors is also “very good”, Rouhani said adding that “deepening banking transactions is prerequisite to development of these ties”.

He added that Tehran is ready to develop relations with Ankara on energy, industry and transportation.

“It is essential that the authorities of the joint commission of cooperation accelerate the process of implementing these agreements,” Rouhani said.

Earlier this month, Iranian Minister of Petroleum Bijan Zanganeh was quoted as saying that Turkey is the only country in Europe that has not stopped buying Iranian oil since the reimposition of US sanctions according to Iran’s ISNA news agency.

In 2018, US President Donald Trump withdrew from the 2015 nuclear deal and reimposed economic sanctions against Iran, including on oil trading and banking transactions.

The Trump administration has warned other countries to abide by its unilateral sanctions, or else its companies could face possible penalties.

Erdogan’s announcement on Thursday risks damaging Turkey’s relationship with the United States, which has been pressing other countries to cut economic ties with Iran.

Meanwhile, Erdogan and Rouhani also discussed security matters in the region, with the Turkish leader vowing to continue “bilateral and regional cooperation with Iran against terrorism”.

Erdogan also condemned the suicide bombing attack in southeastern Iran that left 27 Revolutionary Guard members dead.

Rouhani responded saying it is “unfortunate” that armed groups continue to operate in the region with the support of “foreign powers, especially by the United States”.

SOURCE: AL JAZEERA NEWS

TAGGED:
Share This Article
Founded by a small group of Turkish/Kurdish scholars who have been subjected to persecution at the hands of the Erdogan dictatorship, News About Turkey (NAT) has emerged as a platform that is both exceptional and invaluable. Our objective is to provide you with a comprehensive and sophisticated understanding of the events and developments in Turkey (Türkiye), a country with profound historical and geopolitical importance, a vibrant culture, and a strategic location. Our founders, who have been purged by the Erdogan regime after the so-called coup attempt, are aware of the significance of journalism that is both free and independent. Because of this understanding, we are committed to providing reporting and analysis that is both objective and comprehensive. To give you the most thorough coverage of Turkey, we go further than just scratching the surface. Keep in touch with us so that you can have a better understanding of Turkey's developing story as well as vital and comprehensive news items. Whether you are a resident of Turkey, a member of the Turkish/Kurdish diaspora, or simply someone who has a strong interest in this vital country, we are the most reliable source for news that not only informs but also inspires and engages you.
Leave a comment