European Powers Prepare To Ditch Dollar In Trade With Iran

Authored by Elliot Gabriel via MintPressNews.com,

While the White House’s frenzied anti-Iran campaign has entailed unprecedented attempts to twist the arms of the United States’ traditional European allies, the pressure may be backfiring – a reality made all the more clear by Russian Foreign Minister Sergei Lavrov’s claims that Europe’s three major powers plan to continue trade ties with Iran without the use of the U.S. dollar.

The move would be a clear sign that the foremost European hegemons – France, Germany, and the United Kingdom – plan to protect the interests of companies hoping to do business with Iran, a significant regional power with a market of around 80 million people.

Lavrov’s statement came as Trump insisted that European companies would “absolutely” face sanctions in the aftermath of Washington’s widely-derided sabotage of the six-party Joint Comprehensive Plan of Action (JCPOA).  On May 8, the former host of NBC’s “The Apprentice” blasted the agreement and said that the U.S. would reinstate nuclear sanctions on Iran and “the highest level” of economic bans on the Islamic Republic.

Speaking in Vienna at the ministerial meeting of the JCPOA, Lavrov blasted the U.S. move as “a major violation of the agreed-upon terms which actually made it possible to significantly alleviate tensions from the point of view of the military and political situation in the region and upholding the non-proliferation regime.”  He added that “Iran was meticulously fulfilling its obligations” at the time that Trump destroyed the U.S.’ end of the agreement.

Continuing, Lavrov explained:

The Joint Commission... will be constantly reviewing options which will make it possible, regardless of the US decision, to continue to adhere to all commitments undertaken within the JCPOA framework and provide methods for conducting trade and economic relations with Iran which will not depend on Washington’s whims.  

What they can do is to elaborate collectively and individually such forms of trade and settlements with Iran that will not depend on the dollar and will be accepted by those companies that see trade with Iran more profitable than with the US. Such companies certainly exist – small, medium and large.”

Lavrov noted that the move wasn’t so much meant to “stand up for Iran” but to ensure the economic interests and political credibility of the European signatories to the accord. The Russian top diplomat added that large firms such as Total, Peugeot and Renault have already departed the country, having analyzed the situation and decided that the U.S. market is of far more vital importance.

France, Germany and the U.K. have pleaded with the “America First” president to exempt EU companies, writing a letter to U.S. Secretary-Treasurer Steve Mnuchin and right-wing Secretary of State Mike Pompeo that the nuclear accord remains the “best means” to prevent Iran’s acquisition of a nuclear deterrent given the lack of any credible alternative. Given the hard-line stances of Pompeo and National Security Adviser John Bolton, the pleas were likely greeted with bemusement.

The opening salvo or “snap-back” of sanctions hitting Iran’s automotive sector, gold trade, and other industries will hit the country on August 4, while further sanctions will hit the country’s oil industry and central bank on November 6.

Signaling the likelihood of major clashes to come, Lavrov noted:

Everyone agrees that [stepped-up U.S. sanctions on Iran] is an absolutely illegitimate practice. It cannot be accepted as appropriate, but it is a policy that can hardly be changed. Severe clashes are expected in the trade, economic and political spheres.”

Patience reaches its limits on all sides

A blistering recent speech by German Foreign Minister Heiko Maas signaled the European exasperation with Trump’s go-it-alone policies, which have largely seen the U.S. break from its transatlantic partners while pursuing what he called an “egoistic policy of ‘America First’” in relation to the Paris Climate Agreements, Iran nuclear deal, and introduction of tariffs and other protectionist measures.

The May 12, 2018 cover of the German weekly, Der Spiegel.

Maas further questioned the continued viability of the transatlantic partnership:

Old pillars of reliability are crumbling under the weight of new crises and alliances dating back decades are being challenged in the time it takes to write a tweet … the Atlantic has become wider under President Trump and his policy of isolationism has left a giant vacuum around the world.”

He added:

The urgency with which we must pool Europe’s strength in the world is greater than ever before … our common response to ‘America First’ today must be ‘Europe United!’”

Highlighting how “the Trump administration’s conduct is posing completely new challenges to Europe,” the German foreign minister noted that the White House now “overtly calls [European] values and interests into question,” requiring a more robust and assertive stance – and “the first test of this approach will be the nuclear agreement with Iran.”

While such talk surely signals major tensions between the allies, Iran’s Atomic Energy Organization director Ali Akbar Salehi offered caustic words stressing Iran’s doubt in Europe’s ability to follow through with its independent foreign policy, stating:

Iran understands that Europe and the United States are strategic partners, but they are not lovers who share the same bed … European independence vis-a-vis the US is under threat. In the eyes of the whole world, Europe has become the U.S.’ lackey.

We are faced with an American administration whose decisions have left the world in shock.

Mr. Trump is punishing foreign companies that do business with us and threatening countries that buy our petrol. He’s after fast results. But the EU, Russia and China didn’t expect to be put under so much pressure.

The EU is still under shock. The bloc is like a boxer that has been hit with an uppercut. It needs time to pull itself together.”

Despite Trump's self-reported success at the two-day summit of the North Atlantic Treaty Organization (NATO), Iranians and Europeans alike are hoping that EU leaders can finally put their money where their mouth is and unshackle themselves from the U.S.-imposed hegemonic bondage constraining them since the end of the Second World War.

Comments

Adolfsteinbergovitch Fri, 07/13/2018 - 02:01 Permalink

The next strategy of the decaying empire will be to take participations in every European multinational to get sanctions approved at shareholders meetings or board level, whichever is the easiest. 

Look at what they did with Peugeot for instance. 

Scipio Africanuz Adolfsteinbergovitch Fri, 07/13/2018 - 08:19 Permalink

It's a pity what happened to US Foreign Policy, a real tragedy..

There are practical limits to any objective, and the job of competent advisers, is to clarify those limits. Unfortunately, the current state of US military, requires a man like Mattis at the helm of the Pentagon else, he'd make a mighty fine Secretary of State.

The President has animus towards Iran, fine, he's being pressured by foreign entities and their agants, to destabilise Iran, by them taking advantage of said animus. So far so good, attempts to do that, are in reality, destabilising the USA instead.

Next, this drive to destabilise Iran, is colloquially destabilising European allies, which if truly destabilised, will make possible the complete destabilisation of the entire Middle East, which in turn, will allow the destruction of said foreign entities who got the ball rolling to start with.

Then when the situation gets critical for those foreign entities, and the US decides to commit men and arms, we'll find out first, that the move would be highly unpopular, and resisted, and should the move be implemented anyhow, the USA will lose any chance of remaining a great power. Power is not reposed in kinetic arms, that's strength, power is reposed in credibility, and credibility is protected by diplomacy, and diplomacy is anchored upon respect, which in turn, is burnished by character, which itself is acquired through honor, which in turn, is bestowed by adherence to proper behaviour, which as you know by now, is the admonition of the Rule of Law!

The drive for global imperium, which did not succeed by the way, has completely destroyed all sense of proportion, wisdom, and restraint in American policies. When things get this way, it usually does not end well, and with nukes in play, not well for civilization too.

Opponents of the US withdrawal from the JCPOA, have now drawn a line in the sand, it'd be unwise to cross that line, they make up the majority on the planet. If the administration does not want to do business with Iran, fine, they shouldn't. If they don't want the dollar used, fine, though it should be noted that the money doesn't belong to the US. But telling folks who they can, or cannot do business with, is stretching credulity, especially considering the arms of folks being told that.

The advisers around the President Trump are not serving him well at all! I understand he's strong willed and that's fine, nevertheless, it still does not absolve them of responsibility, except they resign in protest. Take the blinkers off folks, it's an unwinnable war, any attempt to do so, hastens the demise of US economy, don't believe me, go ahead...

In reply to by Adolfsteinbergovitch

Quantify stant Fri, 07/13/2018 - 07:50 Permalink

Is it any wonder. Europe has become fascist again and now trades with a fascist cult despite all its issues. China tries to steal an entire oceans resources and Russia remains fairly poor in retrospect to its resources. South America is run by Marxist idiots. Of course the dollar will remain strong.

In reply to by stant

Manipuflation Fri, 07/13/2018 - 02:13 Permalink

See you later.  We don't buy anything of note from you Europigs anyway.  When you get yourselves into another world war don't call us because we are busy trying to clean up our own mess.     

Manipuflation Justin Case Fri, 07/13/2018 - 03:06 Permalink

What about Henry Ford?

You are going to talk history to me?  I think you need to go back and do a recall on WWI.  Americans did not want to go to war so the Brits blew up the Lusitania as far as I can tell.  Wilson went full scale propaganda and there we were late in the game.  We did not belong there.

Nor did we belong in WWII.  There was never any threat of invasion in those times.  

If there is an invasion to worry about it is all of the foreigners coming into our countries unchecked.  That is happening now.  History is great to know but you are missing history being made and perhaps not a way that we would all think is good. 

In reply to by Justin Case

Matteo S. Justin Case Fri, 07/13/2018 - 06:35 Permalink

That was not only about business.

 

Just read Carrol Quigley’s « the anglo-american oligarchy ».

 

The plan of the then two-headed anglo-american empire was to launch an obedient Nazi Germany against USSR/Russia in order to dismantle the heartland. This forced the anglo-saxon powers to kill the German « pig » instead of the soviet « pig », pig being a reference to Churchill’s saying by 1946 « we killed the wrong pig ».

 

Dismantling the heartland, as theorized by Mackinder, has been the main objective of the anglo-saxon empire since 19th century.

 

The problem is that Hitler did not play the script and instead struck a temporary deal with Stalin in 1939 instead of going directly to USSR/Russia’s throat.

 

Communism never was the point. It was but a pretext to hide the true goal that was pure Mackinderian geopolitics.

 

Why do you think The Rockefellers and other New-York oligarchs welcomed and supported Trotsky in 1917 before the Bolshevik coup ? Not because they were fans of communism.

They did it in order to cause a cataclysmic mess in what was then the Russian empire in order to burst the heartland into separate weak entities that they could dominate.

 

The plan did not fully succeed but nonetheless was a tremendous success. Russia, who was in 1914 the fastest growing economy on the planet and about to become an economic superpower was devastated by the communist folly and never recovered. Just look at the state of the Russian economy in 2018 that’s only the size of Italy’s.

In reply to by Justin Case

Baron Samedi Manipuflation Fri, 07/13/2018 - 03:55 Permalink

For WW1 an interesting source is:

Hidden History: The Secret Origins of the First World War. by Gerry Docherty and Jim MacGregor - sequel: Prolonging the Agony - same authors

For WW2 ... 

1) How they got Americans psychologically prepared for war - in collusion w. Brits:

Desperate Deception - Thomas E Mahle.

2) How they got the Japanese to initiate American participation:

Day Of Deceit: The Truth About FDR and Pearl Harbor - Robert Stinnett

 

... bankers in the shadows.

In reply to by Manipuflation

earleflorida Baron Samedi Fri, 07/13/2018 - 08:08 Permalink

remember the 'Maine' ?

remember the 'Tonkin'?

remember the 'Pearl Harbor and 2.0 - '911'?

all fabricated!

MacArthur slept while the USA Philippines AirForce was destroyed by the same Japanese Pearl Harbor airfleet---- MacArthur knew!!!!

they all knew, as in all wars, [and]... when it was tyme to stop, and [who] the winner(s) was/(were) to be? Period!!!

http://www.pacificwar.org.au/Philippines/Japanattacks.html

Ps:  Germany/Prussia (pre WWI) was the greatest threat to GB hegemony--- while Russia was a backwards agricultural-economy that was riding the purge event horizon since the Russo-Jap war 1904-05(-07).

Great Britain has caused so much harm to America since the Revolution that they [actually],... and miraculously/  mystically morphed the United States into a Monarchy/Aristocracy/Theocracy(Judeo?hristian) Impressment!?!

Fuck GREAT BRITAIN!!! and FUCK the 'CITY of LONDON-Square'!!!

In reply to by Baron Samedi

Matteo S. earleflorida Fri, 07/13/2018 - 09:12 Permalink

Wrong, Russia, although still backwards in 1914, was modernizing and growing at light speed.

 

This is the precise reason Germany decided to risk a general conflict in the summer of 1914. Because the German general staff was fully aware that the balance of powers was quickly shifting in favor of Russia (cf Von Moltke’s statements) and that it was better to have war then than 3 years later with a much stronger Russian Empire.

In reply to by earleflorida

earleflorida Matteo S. Fri, 07/13/2018 - 10:41 Permalink

Russia was already fighting a internal revolution when the war started and if they had waited three years or less there would have been a full scale civil war already.

Russia sided with the allies because of Serbia and being promised the Bosphorus & Dardanelles from the belligerent Ottoman (the sovereign nat'l. territory of Turkey) whom Russia prized.

 

In reply to by Matteo S.

fazsha2 Manipuflation Fri, 07/13/2018 - 04:03 Permalink

You don't know all your history - the RMS Lusitania was sunk nearly TWO YEARS before the US got in to WW1 . Germany's declared decision in January 1917 to target neutral shipping in a designated war-zone became the immediate cause of the entry of the US into the war. Five American merchant ships went down in March. Outraged public opinion now overwhelmingly supported Wilson when he asked Congress for a declaration of war on April 2, 1917.

However, Germany had good reason to target "neutral" American merchant ships. Though largely forgotten by history, the actions of the British Navy to impose a "starvation blockade" on Germany were in contravention of international law. According to the 1856 Declaration of Paris (still in force in 1914), blockades were permitted, but only if they were so-called "effective" blockades — meaning that blockades should only take on the form of a cordon of ships off an enemy port or coast. Blockades 'from a distance' were strictly prohibited.

The blockade also violated the 1909 London Declaration which established the rules under which items could be confiscated (Britain was not a signatory, but the international community — especially the United States — still expected Britain to honor the spirit of the Declaration; it was, after all, Britain's idea).

As noted by historian Alexander Watson, the actions of the British "placed [them] outside the pre-war moral consensus on how naval warfare should be conducted." Yet in the end the war was completely blamed on Germany.

In reply to by Manipuflation

BigJim Manipuflation Fri, 07/13/2018 - 06:17 Permalink

Let us know when US auto engineers come up with a car to match the VW Golf. Or Beetle, for the matter.

Or the MB W123/W124 series.

American cars: giant gas guzzling land yachts that wallow round corners.

(some of the old Chevy Stingrays were pretty cute. But I can't think of a single US saloon I'd prefer over a typical Audi/VW/Merc/Beemer. My dad drove Cadillacs and practically spent his entire life fixing the electronic gadgets plastered onto them)

In reply to by Manipuflation

Ink Pusher Fri, 07/13/2018 - 02:39 Permalink

Holy Fuck,What's Next ? Is Iran going to attain membership in the EU?

Juncker doesn't even bother to dust off his knees or even wipe his mouth

after his Russian "diplomatic consultations" anymore ...

 

new game Ink Pusher Fri, 07/13/2018 - 05:55 Permalink

if peace on earth is the goal, i(euro) would say to trump fuk off, remove your troops, don't tell us what we can and can't do but we want to do trade. euro nations have to remove their tariffs on our goods sold to them. the trade off. nato is a black hole of power control for the mic/usa. euro needs to gets some balls and declare their sovereign status-can they?

i think trump wants them to react this way and then trump obtains his goal(nato crumble) which the mic can't stop. triple win...

trump playing the euro game perfect.

the iran sanctions will backfire as merica becomes isolated with izzy nut yahoo. tumps bad. lines will be drawn. s/a will remain loyal to usa for now, but stuck in the middle. much moar war/drama on this front with russia allied with iran. that one is scary with loose cannon bolten the dolten...

In reply to by Ink Pusher

Zorba's idea Fri, 07/13/2018 - 02:48 Permalink

It will be a wild scramble towards the late cycle for fossil fuels how sovereign nations scramble to satisfy their oil addictions. The old alliances that wrought chaos throughout Europe over the past couple of centuries will seem rather civil to whats coming.